What are the difficulties in post disaster reconstruction for governors? How much does it cost?

Post disaster reconstruction generally faces three major challenges: money, people (construction workers), and time. For California, although there is a lot of money needed, it can still be solved. However, due to insufficient manpower and time, it is even more deadly. Based on past experience, "California reconstruction" may be a long wait that many people cannot afford.
1. California has rich experience in post fire reconstruction
California has experienced frequent large-scale fires in recent years.
The 2017 Tabs fire caused 22 deaths and destroyed over 5500 buildings.
The Camp Fire of 2018 resulted in 85 deaths and 19000 homes and other buildings being destroyed or damaged.
In 2020, a series of wildfires covering ten New York City areas erupted in California, resulting in 31 deaths and destroying over 8200 buildings.
In other years, California has also experienced wildfires that have destroyed over a thousand buildings.
So although the fire that destroyed 12000 houses this time caused property damage and reconstruction costs in some wealthy areas (currently the highest forecast is 270 billion US dollars), there are still many reference cases for "post disaster reconstruction".
After referring to the case, the road to reconstruction in California is very long
Taking the Camp Fire in 2018, which caused the largest losses in California, as an example, Gavin Newson was already Lieutenant Governor at the time and officially became Governor in 2019.
He promised to rebuild at the time, but by September 2024, when American media returned to the paradise town that had been "rebuilt" for five years, they found that the progress of the "reconstruction" was too slow.
Before the fire, there were 26000 residents in this paradise town, but five years after the fire, there were only just over 10000 left.
The Camp Fire destroyed approximately 11000 houses in Paradise Town, and only 2500 houses were rebuilt in 5 years, as with the support of the California government, only 700 houses could be built simultaneously. Many residents still live in RVs or small mobile homes.
In terms of public services, there were originally 36 activity housing parks in the town that mainly served low-income and elderly residents, but only 6 reopened after 5 years.
Such progress has left many residents without homes or jobs in the area, forcing them to gradually move out.
What are the challenges in rebuilding California?
Firstly, money. When the United States encounters such a major disaster, insurance companies usually bear 60% of the losses, and their claims are mainly used for post disaster reconstruction.
But under the annual wildfires in California, insurance companies cannot afford to pay. Among the 12 largest home insurance companies in the United States in the past two years, 7 have reduced their coverage of property insurance in California, and the upscale residential area of Pacific Palisade, which was engulfed by wildfires this time, is within the reduced coverage of most insurance companies. That is to say, the rumored 'insurance company fled ahead of schedule'.
The California government does have its own "Catastrophe Insurance Fund" and the California Fair Access Insurance Requirements Program (Fair Plan) to replace some insurance companies in providing compensation.
But after the California Catastrophe Insurance Fund is leveraged, it is only $10 billion. Fair Plan has approximately $377 million available to pay claims, plus reinsurance (similar to financial leverage) and $5.75 billion in reinsurance, which is far from enough.
However, California can raise reconstruction funds by issuing "catastrophe insurance bonds" and then repay them by charging more insurance premiums to all California homeowners.
And as mentioned earlier about the speed of reconstruction in California, the vast majority of "reconstruction" work has not actually been carried out and will not incur actual costs.
So California can still solve the money problem on its own.
Then there are people, that is, enough construction workers to complete the specific work of reconstruction.
However, the shortage of construction workers in the United States has long been a major problem. In 2022, the shortage of workers in the construction industry in the United States was 391000, which increased to 650000 in 2023, resulting in a large number of construction orders being delayed.

The original construction work was already understaffed, and unless California offers a much higher salary than the market, there won't be enough people in a short period of time for reconstruction. How can we rebuild it?
Finally, there is time, which means that before the original residents can afford the lengthy reconstruction and move out, they need to complete the basic reconstruction work. Provide residents with residential housing and public service facilities. But without enough construction workers, most people probably can't afford to delay.
4. However, there is also a variable
The houses that were burned this time can be averaged at 3.1 million US dollars per unit based on pre fire costs, which is 10 times the average local housing price. Since there are many wealthy residents, it cannot be ruled out that these wealthy people will spend money to rebuild their houses on the land they have already bought.
That can speed up the process.