• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

1. Don't rush into a cash settlement

The process of rebuilding a home can take time, and you or your family may not have the stomach for it. Following a disaster, insurance companies may send out appraisers to settle homeowner claims in cash. But, tempting as it may be to take that money and use it to get you through the early stages of your ordeal, it may not be the best idea.

"Make no mistake, many of those all-cash settlement offers will be lowball offers," David Lazarus of KTLA 5 warned viewers in a segment broadcast Jan. 14. "Get a second opinion first."

Taking a low offer may only provide temporary relief, eventually leaving you short. Before making a decision, reach out to a different real estate or finance expert first to see if the offer you're presented with is reasonable and fits with your plans.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

2. Beware of predatory buyers

Although thousands of L.A. homes are now destroyed, the land still has value. In some cases, the land's value can be higher than the house that sits on it. For this reason, be wary of predatory buyers, developers and investors who may try to pressure you into selling your land. And if you’re inclined to accept an offer, get a second opinion before signing a contract.

You should also know that in mid-January, California Gov. Gavin Newsom signed an executive order barring predatory investors from making unsolicited lowball offers to wildfire victims. If you're pressured or harassed to sell your land, report that violator here.

3. Mortgage payment options

Unfortunately, the obligation to pay off a mortgage does not go away even if your home is completely destroyed. But you may have options.

If you're currently displaced and aren't sure how you'll pay your mortgage, talk to your loan servicer. You may be eligible to defer your monthly payments or put your mortgage into forbearance, which allows you to pause payments for a period of time without a negative impact on your credit score.

Retire richer: The secret to building wealth faster

Most people miss out on key opportunities to grow their wealth. Partnering with the right financial advisor can help you secure a brighter future. Learn how to make your money work harder for you today.

Discover the secret

4. Temporary funds from insurer

As part of your insurance coverage, you may be entitled to limited funds to cover temporary housing and other near-term needs. This is not the same thing as an all-cash settlement, where you accept a lump sum of money instead of having your insurer cover the cost of rebuilding your home.

Read through your insurance paperwork or contact your insurer and ask if you're eligible for any funds. You may not be able to afford a temporary rental on your own, but with your insurer's help it may be possible.

5. Find out if you qualify for federal aid

If your home was destroyed in the recent L.A. wildfires, you may be entitled to federal aid, even if you have insurance. Specifically, funds may be available to you to cover costs such as temporary housing and replacing personal items.

If you have insurance, it’s best to file a claim with your insurer as your first step. But from there, don’t hesitate to file for federal aid.

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.

Try it now
Maurie Backman Freelance Writer

Maurie Backman is a freelance contributor to Moneywise, who has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.