The state is paying for the cost of wildfire cleanup for affected property owners and will not recoup insurance money you need to use to rebuild your home. The state would only recoup insurance money that is specifically designated for debris removal, or that is left over after you have rebuilt your home. These recouped funds will help cover the cost of cleanup statewide.
State and county agencies are required by FEMA to make an effort to recoup insurance funds specified for debris removal or left over after you have rebuilt your home. This is to ensure there is not a duplication of benefits.
There are two types of debris removal coverages in a property owner's insurance policy: specified amount for debris removal, and no specified amount for debris removal.
Specified amount for debris removal: Some insurance policies have specific funds for debris removal. The state will try to recoup the funds specifically designated for debris removal; but only these funds. They will not try to recoup funds that could go toward rebuilding.
No specified amount for debris removal: The state will only ask for leftover insurance funds after the property owner has rebuilt their home. If no funds are left over, the state will not ask for additional payment. If funds are left over, the amount is capped at the cost of debris removal for that property.
The state will also not ask for any additional payment beyond the insurance money you have left over. For example, if your property cleanup cost the state $10,000, and you have $1,000 insurance funds left after you've rebuilt your home, the state will only ask for that $1,000.
We recommend you verify the specifics of your insurance policy with your insurance agent, so you know what to expect after cleanup is complete for your property.