One of the neighborhoods in Palisades that burned down.
Thursday, 13 Mar 2025
Exclusive insights, data, and analysis for financial market experts.
Search
Have an existing account?
Sign In
Yeah now just imagine how much for the beach front properties.
Most of the cost is not of the house, but the location. Even if the whole thing burned you would still see $3mil+ for the cost
Being in insurance. I’ve regularly insured homes that are rentals or short term rentals that sold for around these prices 3mil-10mil. And most the times have a replacement cost estimate of between 300-700k. It’s a weird thing to explain.
You can replace your house for X amount.
What abouy the rest of the 8 million.
We don’t replace land. You’ll still have that if you wanted to sell it.
Ohhh that makes sense
I heard State Farm pulled fire coverage from the area just months ago.
Home insurance in CA gonna be interesting
It’s mostly the value of the land itself though; it’s not going to coast 6 million dollars to rebuild that 6 million dollar house, because it’s a actually a 250,000 dollar house on a 5.75 million dollar piece of land.
How much do you wanna bet that a few high-end insurance companies are going to disappear overnight, leaving *us* to foot the bill?
This comment is gonna get buried but, as someone who works in P&C insurance, I just want to mention that California’s insurance market is ***absolutely cooked/fucked***. It was already bad before, big carriers pulling out left and right, but I can’t even begin to comprehend how anyone in CA metro areas can afford coverage. By “afford”, I don’t mean monetarily, but actually *acquiring* ANY coverage. Government insurance programs have no choice but to step in and pick up where the market will no longer exist.
Before you get your pitchforks, these are simply private companies pulling out of the market (California) to avoid losing solvency. This isn’t about claim denials or anything (which I hope isn’t an issue here).
Won’t somebody think of the insurance companies?
People love to pass around maps like this of the parts of Tampa Bay, FL that get wrecked by hurricanes, like it’s only a rich people problem. But what you don’t see a lot of is the middle class and poor people who also get wrecked because we’re so low lying that the surge and storm flood (especially storm flooding!) gets into all kinds of places, including lower income. I think we probably still have displaced lower income people living in hotels here after Helene and Milton.
I know what really goes on here on the coast of Florida after a hurricane, but I don’t know anything about LA.
Can someone in the know tell us if people who don’t have the means to secure alternative housing are also losing their homes to this fire, or is it really just rich people?
My aunts house burned down. There is so much stuff that they have thats priceless.
I’m not referring to art. I’m referring to things their children made. Family Pictures on the wall. Things that she got from my grandparents home after they died.
Is my aunt very well off? Yes, but my heart breaks for the things money cannot buy.
Companies like Blackrock are probably shaking with anticipation right now
I literally can’t fathom paying that much for a house that small with that little land for X millions. If I’m going to pay upwards at 5 to 10 million for house I’m going to be at least a few hundred yards away from my nearest neighbor
That’s a lot of homes and displaced people.
Ok, if my math checks out….. that’s alot of money
This is going to fuck up insurance rates across the nation isn’t it?
What emotion am i supposed to feel about the prices on those houses? People lost home, valuables, family heirlooms, etc.. The prices of the houses are literally just made up values that someone assigned it so someone else could live it in. its arbitrary.
I can’t find it in myself to be less upset that people, with lives and families, have lost everything just because their personal income allows them to buy homes at this price.
These are, by in large, not the oligarchs we need to be upset with. These are people who work daily for what they have. Sure it’s more than us, but when Elon and Jeff are doing their bullshit these people are small targets.
I’m more pissed at the billionaires pushing ai technology which is destroying our environment
Being into community health you have to personally accept that you’re going to help people you don’t agree with or even like. But they’re still part of your community
Community isn’t about ideology, we need to accept people in our community no matter what.
Damn I just hope the pets are ok
Is that house prices?
I live in LA. Wait until you hear about the peeps that bought houses in Palos Verdes in a KNOWN LAND SLIDE AREA but they were still bought out by the city because insurance wouldn’t cover it. Average price per house =2M.
None of them are going to get home insurance payouts.
Plus like $6 Billion in Lululemon gear.
That’s the price of a land and a house. House itself may not worth as much
Insurance companies like…
How do you live in one of those houses and not have a pool
So, they are people with money, many are actors and in the entertainment industry, but others are doctors, lawyers, and other professionals. Others inherited their properties from parents. It’s still someone’s home where their pets lived and they had wonderful memories. Just truly said. The properties are bigger than they look on satellite.
Market costs are not the same as replacement costs.
Wild that they’re worth so much and still packed in like sardines. If I had that much cash lying around for property there’s no way anyone else is living that close to me.
Most of those houses were bought for much less. Just pointing it out.
I get it, rich people. What I don’t get is being happy tragedy struck so many. Yeah some of them probably had it coming. SOME being the operative word. LM rectifying health care, okay. Being happy a shit ton of people are about to be homeless, not all rich (look at some of the demographics close by)? Fucking check yourselves.
I bet when it comes to insurance those houses are only worth $2mil
People are people. Their house price doesn’t determine if they should have decent human empathy or sympathy. They lost everything and that’s terribly sad.
Property insurance going to be insane after this
Insurance companies right now like
Just fyi, being from Los Angeles, those are the “peasant homes.” You don’t get luxury living there unless it’s above $8 million.