Displaced Californians Weigh Rebuild Options

Though wildfires continue to burn in California today, displaced Napa and Sonoma residents are still grappling with the rebuilding process after last year's historic fires. 

Many homeowners discovered in the wake of the fires that they were underinsured, and are still negotiating with insurance companies for more money to cover the cost of rebuilding. A survey by San Francisco-based nonprofit and consumer advocacy group United Policyholders finds that more than 66 percent of respondents reported they were underinsured by an average $317,000.  According to CBS News, California State's Department of Insurance recently discovered that insurance companies have, "often understated replacement costs to potential customers and omitted or misrepresented fees for permitting, architects, labor and zoning," instilling a false sense of security. Amy Bach, executive director of United Policyholders adds, "If anything, people suspect they're over-insured." 

Construction crews have already put up the frame on Cheri Sharp's new house, but she still questions whether rebuilding was the right choice after California's most destructive wildfire took her old home in wine country nearly a year ago. She has had to dip into retirement savings to cover a $300,000 shortfall in her homeowner's insurance coverage. "We just kind of thought we were taken care of," Sharp, 54, said about her insurance policy. "If I had to do it over again, I'd probably change my mind and move ... Our life from here on out is very different going into our retirement years."

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