Los Angeles mother on the hook for $800K mortgage after newly renovated home burned to ground before she can adjust insurance

ALTADENA, California — This California grandmother’s newly renovated house was completely demolished by the deadly LA wildfires — but she’s still on the hook for the $800,000 mortgage she took out to pay for the upgrade. Miriam Cotero, a 46-year-old Costco worker, had just finished the upgrade — which valued the house at $1.2 million — when the Eaton Fire tore through her neighborhood on Jan.8. But because she hadn’t yet upgraded her insurance on the property, where she and her family had lived for years, she said she’s only covered for $200,000.“I had insurance,” Cotero told The Post Sunday.

“We went from one bedroom and one bathroom to three bedrooms, two bathrooms and an attached garage.The insurance wasn’t updated to reflect the changes.”“We had just appraised it, because we had it refinanced, and it was appraised for $1.2 million.

We borrowed to remodel and the money I owe on the house right now is $800,000.” Cotero said she bet everything on the family home, and it’s gone up and smoke — leaving her with a $6,000 mortgage payment and nowhere to live.“I feel horrible,” Cotero said.“I can’t find anything.”Cotero’s situation is one example of the major crunch facing fire victims in California’s heavily regulated, extremely expensive housing market.

Homeowners who bought years ago have seen their property values skyrocket — discouraging them from moving elsewhere. That also has left many homes under-insured, experts say, after insurers pulled out of California markets in droves ahead of the wildfires.Cotero’s and her three children, ages 17, 22, and 25, had been at Disneyland as the fires were sparking up, and rushed back home when they saw the news.They spent a few hours taking what they could, then fled to safety.They believe the house was engulfed just four hours after they left.

Returning on Sunday for the first they found only a pile of charred rubble.“We lost everything, all our memories,” she...