I am really missing the point that people do not want an empty lot in RB. I think the fact that there are a lot of people buying in del Sur is evidence that people want a new home of their own. The fact is that there were not too many options for good empty lots to build on in RB.
Additionally I think people are way overestimating the build out costs that insurers are going to pay out for properties. I would venture to say that when they calculate the insurance premium for rebuilding they are using 100$ to 150$ per square foot maximum.
The replace cost provision is really geared towards the contents of the property. For the added premium the Insurer will replace your 40 inch 1980 TV with a 40 inch 2007 TV as opposed to acv that would essentially take the 40 inch TV and dpreciate essentially leaving you wiht nothing.
The 150% vs 100% is a rider to your policy that essentially allows the rebuild to account for added costs such as new building codes for earthquake, electrical etc.
Just because you put new florros in the house or that you added Granite to the kitchen doesn’t mean you are going to be compensated for this. Especially if you had not discussed these renovation with your agent so that he could update the policy and charge a HIGHER premium for this added risk that they take on.
With respect to the empty lot, people are going to have to check their policies, but most of the time it begins with “Debris Removal.” A good insurance agent writing policies for a reputable company would make sure that this is included in your policy. Many of the more reputable compnaies will ahve pre-negotiated rates and direct billing wiht companies that speacialize in this area.
I have spoken to a few home owners effected by the fire and when asked if they would rent for a while the consensus seemed to be that they could never see themselves going abck to being renters. Was funny to hear, but was a reality check that people like to call themselves owners even when it is the bank that owns the home.
That being said I can only see this fire propping up the housing market. Many people who had considered moving up will see this as a reason to buy what they want or redo the house the way they want.
My question for the board is will these people who rebuild get to use their original tax base when their homes are reappraised? If they do, many people with older homes may make out on this. Sort of like getting a brand new car but having to pay the older licensing fee.
