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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]People don't seem to understand that Pacific Palisades, Hollywood Hills, and Malibu are not at all normal neighborhoods in need of policy solutions that would address 99.9% of the rest of the country. These are ultra luxury houses owned by people who can either cover the cost of replacement without much trouble or people who have lived there long enough to be locked into extremely low public tax rates and affordable home insurance. They could have used their savings from taxes over the years to buy additional insurance or put that money into accounts for savings or to cover unexpected costs like these. [/quote]

For the people who have lived there forever in more modest homes, the land without the house is probably worth more than the land with the house [/quote]

How so? If the land around yours is uninhabitable then your land value drops too.  RE land price depends on what's around.  If it's apocalyptic hellscape it's only going to be worth it's projected future valuation (speculation) because now it's worth nothing, you can't live there or build there for a while.  This is not the same as buying a lot to build on in the future but not wanting to yet in an area that's fully functioning. It's ruins everywhere and failed infrastructure, anyone buying this land is paying for its future potential. [/quote]

Ha, this is laughable. This is absolutely not what happens in LA. Land property value does NOT drop if your home is burned down in coastal California. You still pay the exact same amount in property taxes for the land as you paid before your house burned - you just no longer pay the structure part of the property tax. It absolutely remains just as valuable.

So here is an example of a beachfront house in the 19,000 block of Pacific Coast Highway in the area of Malibu that perhaps was burned.  According to the County Property Tax system the sales price of the house was 4.9 million two years ago. They break down the land value and the home value. The land value is listed as 4 million and the improvement (the house) is listed at $948,600. So this property owner is going to not have to pay taxes on the improvement (948,600) but is going to have to pay property tax on 4 million dollars for the land. [/quote]

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