After a widespread disaster, rebuilding costs in the area can jump because contractors, supplies and labor are in short supply. California's residential disclosure (Section 10102) calls this demand surge. A limit that was adequate before a catastrophe may fall short afterward.

The disclosure tells consumers to consider higher limits or extended replacement cost to prepare for demand surge. Actual cash value coverage would leave the insured with less, not more.

California also lets an insured combine limits after a state of emergency loss. When the dwelling limit is insufficient, the insured may combine payments up to the limits for the primary dwelling and other structures for expenses needed to rebuild the dwelling, without having to replace the other structures (Section 10103.7(a)). Example: dwelling $500,000 and other structures $50,000; rebuilding the home costs $540,000, so the full $540,000 can be paid.