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Residents have begun returning to their Laguna Beach, Calif. homes, but those whose homes were destroyed or damaged by a landslide Wednesday will have to face rebuilding without collecting on their homeowners insurance.

The landslide struck the Bluebird Canyon area of Laguna Beach, destroying or badly damaging 18 homes. Almost all of those homes, according to Lehman Bros. analyst Jay Gelb, were valued at $1.5 million or more, but will not be paid for by insurers.

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