A friend of mine has also lost her home in the Palisades (complete loss) and the out of pocket costs they’ve had (without seeing a dime of insurance money so far) is eyepopping. The lot needed to be cleared, the wreckage needed to be hauled away, what was left of the structures had to be demolished. Labor is scarce and the costs of everything are just enormous.
So OP- I’d have a sit down with your agent. Even if you can easily afford to rebuild, it’s not as straightforward as it seems. Builders know they can charge what they want; scavengers have moved in to “take the empty lot off your hands” at rock bottom prices, and what they thought was an easy decision (get the insurance money, rebuild, move back) is now complicated by the extensive timelines, enormous costs, and watching everyone in their neighborhood do the same dance. Find out exactly what your insurance covers, what hoops you need to jump through to collect, what will and would not be covered in a total loss, etc. Don’t cancel before you know exactly what you are already paying for.