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Loss of use coverage, also known as additional living expenses (ALE) insurance, is a standard part of most homeowners' insurance policies...

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.

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.

That's a personal choice. Self insuring comes with known consequences. I for one would never self insure unless I could take the total loss, kinda like going to the horse track, take what you can afford to lose because it's a gamble.

More than 350,000 people in California live in towns sited completely within zones deemed to be at very high risk of fire. In total, more than 2.7 million people live in "very high fire hazard severity zones", which also include areas at lesser risk.

If you are going to live in these areas, be prepared.