Insurance to rebuild in your area after natural disasters and other thoughts

[Becca F.]

The very tragic LA fires have generated a lot of discussion about insurance costs. People have been dropped by insurance companies in wildfire areas and had to scramble to try to find insurance - some using California Fair Plan. And not to long ago were the Florida and NC hurricanes. 

 I've seen estimates of $200 to $400 per square foot for SoCal with $700 sq ft for something higher end and building up a hill and but possibly higher for San Francisco Bay Area (lhigher labor costs, etc.).  Ex: using $300 sq ft for 2000 sq ft home it's $600,000 or $450,000 for a 1500 sq ft. I talked an experienced investor and he said $300 to $400 for San Francisco - the insurance company is going to go with the less expensive costs. California owners, should we increase our coverage, which should result in higher premiums? 

 The CA Dept of Insurance allowed a 34% increase in 2024. I wonder how much it'll go up in 2025. Separate issue is only 13% of CA homeowners pay for earthquake insurance because it's so expensive and the deductible can be really high.

What are your re-building costs in your area? Are people paying for extra flood insurance or other insurance? Is there a plan similar to California Fair Plan in your state? Other thoughts?