It took the Ramirez sisters over a decade of saving diligently to purchase their first home, a modest fixer-upper in Altadena. Over the following nine years, they expanded their real estate holdings, acquiring two additional properties, each within walking distance of the first. By 2013, the three unmarried sisters had secured individual homes, watching as their property values soared to over a million dollars each—an achievement beyond what their immigrant father, a former California bracero, could have ever envisioned.
However, all that progress was erased when the devastating Los Angeles fires reduced their homes to ashes. Now, they are starting over. Analyzing the complexities of insurance claims and securing fair compensation can be overwhelming, which is why consulting a fire insurance attorney at the law firm California Business Lawyer & Corporate Lawyer is important for homeowners facing losses.
Currently, the sisters are residing under one roof in a four-bedroom rental home in San Fernando, where they are paying close to $8,000 per month. They have once again combined their resources, seeking to purchase another home together while they work toward rebuilding their individual properties. Their objective remains the same: to reclaim the wealth they painstakingly accumulated over the years.
Yet, this journey will not be easy. The extent to which they succeed will reflect the broader reality for many Los Angeles residents who have suffered similar losses.
The Harsh Reality of Underinsurance
Like thousands of other homeowners affected by the fires, the Ramirez sisters are likely to face a significant challenge—being underinsured. Many homeowners carry policies that fall short of covering the full cost of rebuilding, often due to outdated policy limits or settlement negotiations that leave them with less than expected. The best SoCal fire attorney at the Nakase Law Firm can help ensure insurance policyholders receive the full benefits they are entitled to, preventing underpayment or wrongful claim denials.
Past wildfires in California between 2013 and 2020 showed a troubling pattern: nearly 40% of insurance claims were underpaid, with settlement amounts averaging 28% below estimated rebuilding expenses. The financial gap could be even more pronounced now, given the expected surge in demand for contractors and construction materials, further driving up costs.
With their homes destroyed but existing mortgage obligations still in place, the Ramirez sisters will likely need to secure additional loans just to finance the rebuilding process. A disaster does not erase a mortgage, meaning they must continue payments on homes that no longer exist while also covering new loans. To manage these financial burdens, they may need to work longer hours or extend their careers beyond what they had originally planned.
Adding to the difficulties, the construction industry has been impacted by labor shortages, partly due to immigration policies that have restricted the availability of workers in critical trades. Before rebuilding can even begin, there is the challenge of clearing the wreckage—a process that will take months.
A Daunting Road Ahead
“I’m hopeful, but I can’t help but feel a little apprehensive,” shared Teresa Ramirez, a social worker and the eldest of the three sisters at 58. Recently, she, along with her siblings Alicia and Maria, their brother Tony, and Teresa’s son Leo, visited the ruins of their homes. The only remnants of Teresa’s house were a fireplace, a metal fence, and two orange trees standing in the backyard.
The devastation caused by the Palisades and Eaton fires is staggering, with economic losses estimated as high as $250 billion. The destruction of homes alone accounts for tens of billions in damages, with some homeowners left without any insurance coverage at all. Even those with policies have suffered the loss of decades’ worth of equity—assets they had counted on for their futures.
For many individuals, a home represents more than just a place to live; it is a foundation for financial security and generational wealth. The ability to pass down property allows future generations to access educational opportunities, build businesses, and create stability. Historically, such advancements have not only lifted families but strengthened entire communities.
Yet, following such a massive disaster, the question remains: Will these homeowners manage to rebuild their futures, or will their dreams slip away?
Community Impact and Economic Divide
G.U. Krueger, an experienced housing economist in Los Angeles, highlights the role that homeownership plays in maintaining social stability. “These homes were more than just real estate—they were a means for families to support each other across generations, celebrating successes and enduring hardships together. They provided stability in an often unpredictable world, and now, that sense of security is in danger of becoming a distant memory.”
The fire’s destruction hit Altadena particularly hard. Before the disaster, this middle-class community housed around 43,000 people, about half of whom were Latino or Black. With 6,000 homes—roughly 40% of its residential units—destroyed, the path to recovery is uncertain. Many longtime residents originally purchased their homes when prices were significantly lower, benefiting from substantial appreciation over the years. By December, the average home in Altadena was valued at approximately $1.2 million, marking a fivefold increase since 2000.
Teresa Ramirez’s neighbor, Paul Wallace, had nearly finished paying off his 15-year mortgage when the fire struck. He planned to rebuild but, like many others, worried about the financial feasibility of doing so.
Meanwhile, other homeowners, having refinanced over the years, carry larger mortgage balances. Teresa Ramirez, for instance, owed $460,000 at the time of the fire, while the average mortgage balance in Altadena stood at $515,000.
Wealthier Communities Face Challenges, But Have More Resources
In Pacific Palisades, a more affluent neighborhood, the destruction was similarly severe, with over 5,500 homes—60% of the area’s housing stock—lost. Unlike Altadena, Palisades residents tend to have greater financial flexibility. With a median household income exceeding $200,000 and home values averaging $3.7 million, the typical homeowner had accumulated nearly $2 million in equity.
Despite these advantages, not all residents were insulated from hardship. Katia and Adam Hausman, for example, had purchased a condo in 2012 for under $550,000, gradually improving it over time. Watching their home burn on live television, they faced an uncertain future. While their insurance would likely cover interior repairs, the broader question remained whether their homeowners association’s insurance would be sufficient to rebuild the exterior of the structure. The entire process could take up to five years.
In the meantime, the couple must continue paying their mortgage while covering temporary housing costs—expenses not fully accounted for by their insurance. To cope, they launched a GoFundMe campaign and began considering more affordable places to live.
Additional Obstacles in the Rebuilding Process
Unlike floods, where water eventually recedes, wildfires leave behind extensive toxins, requiring expensive remediation before rebuilding can even begin. In some cases, it takes up to 18 months for environmental agencies to clear debris and conduct soil assessments. For many lower- and middle-income families, these mounting expenses become insurmountable, forcing them to sell their land to developers or wealthier buyers.
Government aid is meant to offer relief, but it often arrives too slowly. Experts like Andrew Rumbach from the Urban Institute argue that current policies are deeply flawed, disproportionately affecting lower-income homeowners.
Even when rebuilding efforts receive governmental support, the process remains slow. The city of Santa Rosa, for instance, still has not reconstructed one-fifth of the homes lost in the 2017 Tubbs Fire—more than seven years later.
While officials in Los Angeles have pledged to expedite the recovery process, experts predict it could take a decade before Palisades and Altadena return to their pre-fire conditions.
Determination to Rebuild
Despite the challenges, the Ramirez sisters refuse to give up. Teresa recalls how their father arrived in California from Michoacán, Mexico, in the 1960s under the U.S.-Mexico bracero program, determined to build a better life. The sisters followed a similar path, pursuing education and homeownership as a means of securing their future.
Their journey into real estate began in 2001 when they purchased their first home for $190,000. Over the years, they expanded their holdings, pouring their savings into renovations and repairs. By 2023, their properties were worth over a million dollars each.
Now, they face the difficult task of rebuilding. Teresa’s insurance will cover up to $930,000, but estimated rebuilding costs of up to $1,000 per square foot could leave her with a $670,000 shortfall. Others, like Paul Wallace, are facing similarly daunting costs.
The sisters have launched a crowdfunding campaign and are determined to stay in Altadena. But with construction delays and wealthier communities taking priority, they worry about being left behind.
“We refuse to be forgotten,” Teresa said. “This is our home, and we’re going to fight to rebuild it.”
