“Pacific Palisades was a sleepy, middle class neighborhood back then. Not the rich, celebrity enclave it later became”
This is why few people who live in inherited houses in Pacific Palisades will be able to rebuild. They may get a lot of money for their land from developers or a much smaller amount if the government invokes the (IMHO) misguided Supreme Court Kelo decision and takes their land. The wonderful life they had there is over.
Why not purchase a homeowners policy that covers the cost of rebuilding, they call it replacement cost insurance rider.