California wildfire survivors got a rude surprise that could hit more Americans

By Leslie Kaufman, Bloomberg

A year after the Los Angeles wildfires, many survivors face the same problem: Their insurance policies aren’t paying out enough to cover the cost of rebuilding.

It’s a tragic predicament. And it will happen again when the next disaster hits.

Since the 1990s, American homes have been systematically underinsured in the event that they are completely destroyed. Study after study shows that, counter to the public’s understanding, many home insurance...