Rebuilding After a Fire: A Home Builder’s Guide To Starting Over

As a custom home builder in Colorado Springs, I’ve seen firsthand the devastation that a wildfire can cause; our community suffered two of them in two years: the Waldo Canyon Fire in 2012 and the Black Forest Fire in 2013 (pictured above).

Between the two fires, we lost approximately 1,000 homes and a few precious lives as well.

To date, the Los Angeles Fires have seen the loss of well over 10,000 structures and, sadly, a number of lives as well. The nation’s heart, mind, and prayers are with the communities that have suffered this massive tragedy.

My marketing director recently found a very helpful article written by a gentleman who had suffered the loss of his home a while back; I’ve taken the liberty of linking to it here as the author has expressly granted permission for it to be freely distributed to as many people as possible.

The author has also inspired me to do the same thing, but from a different perspective; as a home builder who’s helped many folks rebuild their home after a total loss after a devastating fire, I’d like to offer some thoughts and tips that hopefully might be helpful to some folks out there trying to navigate the new reality they suddenly find themselves in. I hope you find these helpful.

#1: Get creative with temporary housing solutions

Securing rental housing will be a massive challenge. Consider buying and living in an RV and then selling it once your rebuild is complete. We have had several clients do this, which allowed them to capture the funds in their policy earmarked for rental expenses, which for most policies is the cost of renting for two years. This is not insignificant money!

Also, be sure to check your policy terms for ALE (“alternative living expenses”) prior to securing temporary housing to see what they will pay for, and what the limits are.

#2: Take time to inventory your stuff

Typically, there is a lot of money in an insurance policy for the CONTENTS of your home. Take the time, as difficult as it may be, and list EVERYTHING you owned.

EVERYTHING.

We had one client who lost a home in a fire assemble a 10,000-line spreadsheet for the adjuster, and it paid off big time. 

For any folks reading this who have not suffered a total fire loss, consider taking a video of the contents of your home and then storing that video in the cloud (iCloud, Dropbox, Google Drive, etc.) or at some location other than your home.

NOTE: fire-proof safes are not necessarily completely fireproof; they have varying levels of protection, so don’t rely on them.

#3: Don’t rush to rebuild if you aren’t ready yet

There is going to be a massive demand for architects, contractors, tradespeople, etc. This may sound counterintuitive, but you might not want to spring into action as fast as you can. If you have the ability to wait to rebuild, this is something you should seriously consider.

Of course, you need to be mindful of any time limits that might be within your policy for the rebuilding process so see how long you have and make sure you don’t run out the clock by starting too late.

From my experience after two wildfires in Colorado, I can tell you it took about 18 months to get the first folks back into their homes, with many folks in 2- 3 year range. I suspect that the time frames with these fires could be significantly longer.

#4: Take time to acknowledge the trauma

Don’t be afraid to process your trauma and your loss. The clients I’ve worked with have experienced every possible response to losing their homes that you can imagine.

On one end of the spectrum, I literally had a client tell me they’d be happy to lose their home again in the future. They LOVED getting a brand new home and even got two new cars, all new furnishings, and new clothes out of the deal.

On the other end, I’ve had clients who got all the way through navigating the insurance claim and putting together house plans and a budget but then just could not bring themselves to rebuild. Instead, they ended up selling their lot; there was just too much pain and trauma for them.

#5: Make sure you don’t undervalue your land

If you decide to sell your lot, don’t undervalue it. Your initial thought process might be to sell as quickly as possible and move on. This is understandable, but don’t automatically lowball the lot valuation just because of the current state of your neighborhood.

After the Black Forest fire, I was surprised to see that many 2.5-acre and 5-acre lots that were once heavily treed but were now barren did not decrease in value at all! They now had views of the nearby mountains, including Pikes Peak for the first time.

Your neighborhood, while now devoid of any vegetation and landscaping, will, over time, replace these things, at least to a degree. Add to that the fact that ALL of the homes in your neighborhood now will be brand new, and you’ll likely see that the appraisal values in a handful of years are robust.

#6: Beware out-of-state builders

Avoid the carpetbaggers if at all possible. There will be an influx of contractors from out of your area; it’s just a fact. They will not have any relationships or history in your area, and with zero infrastructure, they’re just looking to make a quick buck.

Remember: your relationship with your contractor is a long-term relationship; you will want and need them around for warranty work once the project is done, which can sometimes span a few years.

Due to the massive demand, it might be necessary to utilize out-of-town resources; either way, do not forgo doing your due diligence on contractor candidates.

At minimum, your contractor should have a solid general liability insurance policy ( in Colorado, a $1MM occurrence and $3MM aggregate is considered the minimum ) and a workers compensation policy in place, and should easily be able to procure a certificate of insurance for those policies.

Additionally, they need to be licensed by the building jurisdiction that you’re in. Your contractor should have a resume of past clients that you’re able to contact, and hopefully even walk through some of their previous projects.

#7: Don’t forget about your mortgage

If you have a mortgage on your home, don’t forget to notify the mortgage company of the loss and continue to make your payments. If you decide not to rebuild, you will need to pay off any outstanding balance prior to the sale of your lot.

Conclusion: it will be okay in the end

Having said all of this, be assured you WILL survive this, and at some point, your life will return to normal. The rebuilding process is a marathon, not a sprint, so set your expectations and your life rhythms accordingly.

If you have any questions about rebuilding your home after a fire, feel free to contact me. While I live and build homes in Southern Colorado, and there aren’t (currently) any wildfires affecting housing, almost everything I’ve shared above should apply to just about anywhere in the USA.

The prayers of the nation are with you.