These hidden rules reveal how California insurers undercut wildfire claims, leaving families in damaged homes

As flames incinerated whole blocks in Southern California, fierce winds pushed dark, speckled ash through Rossana Valverde’s door frames, windows and vents. Her home stood a short drive from the worst destruction caused by January’s Eaton Fire, but she had gotten lucky: Apart from a singed tree, her property appeared unscathed.

Yet the acrid stench in the bungalow she shared with her husband suggested otherwise. The remains of other people’s homes now permeated hers.