I imagine people who've had 2nd or 3rd houses in hollywood hills are not interested in rebuilding or doing the work. 

So if your replacement cost valuation on the policy is not high enough to actually rebuild the property (oftentimes this is the situation when contractors are charging premiums because they are so busy with other losses), and unless you are personally willing to pay the shortfall to rebuild the property, the insurer will only pay you the depreciated (ACV) for your loss.

In the meantime, I’m exploring creative solutions to access the equity in my home while simultaneously rebuilding a credible and sustainable business.

Just want to mention that sometimes it works out better to raze an existing property down to like 2 studs and rebuild around it so that it still is classified as a remodel versus a complete new build. 

@Bruce Woodruff were gonna get a slew of people saying it will be fine, people will rebuild and all will be better than ever.

Their lease is 6 month term with a same rate month to month however, their insurance states the rebuild of their home and fire investigation efforts are going to take 12-18 months. 

One golden rule I follow,if it takes a long time to fix/replace when it breaks, don't buy a cheap one.Imagine, this thing breaks in the middle of your peak season and the people who can come out to rebuild are 2 weeks out....It takes at least a day or two to build something like this even if you are super skilled.

I started a new post asking people's thoughts about insurance costs in your local area and specifically costs to rebuild and other challenges:https://www.biggerpockets.com/forums/95/topics/1227051-insur...

My experience is that when people can afford to keep their expensive property, (sans a house), they rebuild.

The timeline for reconstruction is decades, many will choose not to rebuild or re-take the risk.