If you live in California, these days it’s hard not to think about emergency planning in case of a fire or other natural disaster.
We moved to a new home in late 2023, and only after the LA fires did it register with me that the primary bedroom, where we and all three dogs sleep, is on the top floor with no stairs off the balcony.
I quickly fixed that problem, buying a fire escape ladder for both the balcony and the window, along with a crate and pulley system for lowering the dogs to safety. I also bought fire blankets for upstairs and downstairs. Next, I’ll be looking into getting stairs built from the balcony to the yard below.
Also important: I gathered paperwork, documents, ID, and made sure I had copies stored electronically.
Then it was time to consider the longer-term aspects of owning a home after a natural disaster. There are some important things to know.
Check your insurance
If you rent a home or a part of a home, you need renter’s insurance to cover your personal belongings. Your landlord’s policy doesn’t cover your personal items.
If you own a home, it’s time to check in with your insurance agent. Are you adequately covered? Is your personal property covered? Do you have coverage for lodging and additional living expenses after a fire or other disaster?
If your home is in your living trust
If you titled your home in the name of your living trust (and you should!), you will want to contact your insurance agent to confirm that your trust is named on the policy.
How carriers handle this can vary, but generally your trust is either the “named insured,” an “additional insured,” (in addition to you personally, that is) and/or the “loss payee.” Naming the trust as a loss payee can ensure that payments are directed to the trust and disbursed thereunder by the then acting trustee, whether that’s you or a successor. If you are harmed or killed in the disaster, your successor trustee will need to be able to act and obtain the insurance proceeds.
If your automobile is titled in the name of your trust, also check that your car insurance has the trust as an additional insured or loss payee.
Mortgage payments
Adding insult to the serious injury of losing one’s home in a fire or other disaster, homeowners are still responsible for paying their mortgage payments in full.
If your property was affected by the fires, contact your mortgage lender to notify them of the loss and to see if any relief is available. Los Angeles County obtained commitments from over 400 lenders to:
—Reduce or pause mortgage payments for 90 days
—Waive late fees for 90 days
—Protect owners from new foreclosures or evictions for 60 days
—Not report late payments to credit agencies
—This relief is not automatic. You must apply for relief through your mortgage lender.
Property taxes: Along with paying your mortgage following a natural disaster, you’ll still need to pay property taxes on your property, no matter its condition.
However, there are two types of relief available.
Application for reassessment
If a natural disaster occurs and damages or destroys your property, the county assessor will reappraise the property to reflect its value in its damaged condition, provided that the loss exceeds $10,000 in current value. You must file the Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity with the county assessor within twelve months of the date of damage or destruction. In LA and several other Counties, that’s Form ADS-820.
Decline in value
If the current market value of your property is less than its assessed value on January 1, you may apply for a “Decline in Value” review by filing that form with the assessor. In LA and some other counties, that is Form RP-87. The filing must be made during the designated filing period as defined by the County Assessor—for LA County this year, that is July 2 through November 30, but it does vary by county.
Transferring base year value
Proposition 19 is roundly despised for gutting the exclusion from reassessment on transfers of property between parents and children, but the proposition is helpful to homeowners who are victims of natural disasters. Indeed, that’s how it was sold to California voters.
Under Proposition 19, an owner of a primary residence who is a victim of a wildfire or other natural disaster may transfer the factored base year value of their primary residence to a replacement primary residence that is located anywhere in California and purchased or newly constructed within two years of the sale (or other transfer) of the original primary residence. Again, a form must be filed, and the Assessor’s office will need some time to review the transfer, but ultimately, this can save significant property taxes.
The California State Board of Equalization Proposition 19 and Disaster Relief webpages have additional information.
For many people, their home is their most valuable asset. Take the time to get your house in order and take action where you can. Your advanced preparation can make all the difference. But while advance planning is important, so is getting help when it’s needed. If you or someone you know was affected by the LA Fires, please refer to ca.gov/LAfires for recovery resources and help with seniors, animals, children, mental health, mortgage relief, shelter, and repairs, legal help, and other valuable information.
Teresa J. Rhyne is an attorney practicing in estate planning and trust administration in Riverside and Paso Robles. She is also the #1 New York Times bestselling author of “The Dog Lived (and So Will I)” and “Poppy in The Wild.” You can reach her at Teresa@trlawgroup.net