The reality (or the more egregious situation now depending on how you look at it) is the developers who are able to take advantage of the situation a lot of people find themselves in, especially those in Altadena, less so in the Palisades.
Altadena had generational homeowners who inherited homes from parents and grandparents with paid off mortgages and for better or worse, did not insure them. So from that perspective, this will be an ongoing issue of gentrification/less affordable housing as owners who have no insurance pay out to rebuild have to sell, McMansions are built onto these lots and story as old as time. Lots of people from that area left or are still leaving CA as their affairs get wrapped up.
The ground/soil can’t *not* be a mess after every bottle of household cleaner, paint can and weed killer from garages, etc burned into the ground in all areas. I don’t know if we know what that means for now and future.