Concerns are growing over damage recovery and insurance processing issues due to the recent wildfires in the LA area. JP Morgan Chase estimates that the housing insurance payouts from this wildfire could reach approximately $20 billion (about 29.5 trillion won). However, even those who are insured feel anxious about the payout process.

Della Torre (32), who lost her home in Altadena, Northern LA, stated, "I worry that the insurance company might go bankrupt and not be able to cover the claims," while Leo Frank (66), who also suffered damage in the same area, expressed, "I am concerned that the payout will be delayed or that it won't cover the entire recovery costs."

An even more serious issue is that many residents are unable to obtain insurance at all. Due to frequent wildfires in recent years, many insurance companies have refused to issue or have reduced renewals in California. According to data from the California Department of Insurance, 2.8 million insurance contracts were denied from 2020 to 2022, with 531,000 of those in the LA County area. As a result, many residents are left to cope with wildfire damage without insurance.

There is a minimal insurance option provided by the government called the 'FAIR Plan,' but questions have been raised about its coverage and payout capacity. The coverage limit of the FAIR Plan is only $3 million, which is far below the average value of damaged homes. Additionally, as of 2022, the FAIR Plan had only $200 million in surplus cash, raising concerns about its ability to pay out claims.

Victims can receive up to $43,600 in assistance from the Federal Emergency Management Agency (FEMA), but this is a limited amount per individual or household. Additional government grants take time to pass through Congress, making it difficult for affected residents to rely on them. In fact, in past cases of hurricanes and wildfire damage, grant policies have taken anywhere from three months to as long as a year and a half to pass through Congress.

Ultimately, LA residents will likely have to rely on various means for reconstruction, including federal policies, charitable donations, and savings. Some may even consider selling their land as a self-help measure.

This recent LA wildfire has raised significant issues beyond just a natural disaster, including the payout capacity of insurance companies, enrollment problems, and the limits of government support. While residents are seeking various means for reconstruction, the crucial challenge will be how quickly the government and insurance companies can provide substantial support for recovery.