In the aftermath of the Eaton Canyon Fire, many homeowners are now facing a tough decision: rebuild or sell? Recent reporting from the Los Angeles Times highlights the sharp decline in property values in fire-affected neighborhoods like Altadena. Several homeowners who initially listed their properties for over $900,000 are now seeing prices drop by $150,000–$500,000 due to softening demand and increased insurance costs.
But for wildfire victims pursuing legal compensation, this isn’t just a real estate issue—it’s a legal strategy decision.
At Bridgford, Gleason & Artinian, we work closely with each client to understand the full scope of their loss and determine the best path forward. In most cases, choosing to rebuild results in a significantly higher legal recovery under California law.
How the Law Works: “The Lesser Rule”
California follows what’s called the “lesser rule” when calculating property damage. That means your compensation is typically based on either:
- The cost to rebuild your home, or
- The drop in fair market value (diminution in value) of your property after the fire
…whichever is less.
In today’s declining market, the diminished value of a vacant lot may be far less than the full cost of rebuilding a home—potentially reducing your legal recovery by hundreds of thousands of dollars.
What This Means for You
If you’re a BGA client and unsure whether you want to rebuild, we encourage you to speak with us before making a final decision. Not only can we help you understand the long-term legal and financial impact, but we can also provide updated documentation strategies to maximize your claim.
We’re Here to Help
At BGA, we don’t just file claims—we walk with you through every step of the process. Rebuilding is hard. But in many cases, it’s the key to recovering the full value of what you’ve lost. If you have questions or want to revisit your claim strategy, contact us today or meet us in person at one of our town halls.