Malibu mansions devastated by California wildfires spark insurance concerns

Real estate investor Robert Rivani has suffered a significant loss after the recent California wildfires destroyed his Malibu mansion on Carbon Beach. Rivani had invested nearly $27 million in the property, which he planned to list for $40 million this spring. The house was reduced to rubble during the Palisades fire.

"It's catastrophic," Rivani said. "How do you sum up losing over $20 million in 24 hours to any human being?" The community of Carbon Beach, known as Billionaires' Beach, was not spared from the devastation that affected more than 12,000 homes and buildings across Los Angeles, resulting in at least 24 fatalities.

The mansion was originally purchased by Rivani for $19.55 million in 2022 and underwent extensive renovations. Despite being covered by the state's Fair Plan insurance, which provides up to $3 million in coverage for residential properties, Rivani expects to incur a significant financial loss as no insurer would cover the full replacement value of the property.

"The land that was once worth $15 million is probably worthless now, too," he commented on the situation.

Entrepreneur Grant Cardone also owns property on Carbon Beach and reported damage to his home but said it remains standing. He criticized local and state authorities for their lack of preparedness for such fires and expressed concerns about rebuilding efforts given the extent of damage.

Cardone stated: "The houses adjacent to me, all the way down Carbon Beach, the entire structures are gone."

Los Angeles Mayor Karen Bass addressed accusations of unpreparedness at a press conference, attributing the fire's severity to weather conditions unseen in over a decade. Governor Gavin Newsom announced an investigation into water pressure loss affecting fire hydrants during the blaze.

Cardone also criticized regulatory restrictions from the California Coastal Commission that he believes hindered redevelopment efforts: "Many of these homes are 50 years old. They're tinderboxes."

As investigations continue into both causes and responses to these fires, homeowners like Rivani and Cardone face uncertain futures regarding their properties on one of Malibu's most prestigious stretches of coastline.