Loss of use coverage, also known as additional living expenses (ALE) insurance, is a standard part of most homeowners insurance policies. It helps pay for living expenses if your home is damaged and you can’t live there.
Of course, that is assuming that the homeowner had insurance in force at the time of the fire. A great many of them did not.
And that also assumes that the insurance companies that did provide coverage remain solvent and can pay the contracted benefits. That remains to be seen.
Reportedly, over 12,000 structures have been destroyed, and the numbers keep climbing. Over 50,000 people are suddenly homeless. The California Fair Plan program is said to be exposed to over 24 billion dollars in claims, which they simply do not have the funds to pay. Total damages from the firestorms are estimated at over 150 billion dollars. That number keeps climbing too. But nobody knows what claims total will be. "More money than what insurance companies have on hand" would be a good first approximate guess.
The people who did not have insurance are absolutely screwed. No, they will not be paying their mortgages or property taxes ever again.
That is what will lead to some very tense discussions behind closed doors.