The Chilean earthquake and tsunami disaster of 27 February 2010 impacted 12 million people in 900 cities and towns, causing more than US$30 billion in losses. This paper considers how the national government responded to the challenges of coastal and urban reconstruction, and examines the actions taken in the housing, land use mitigation planning, insurance, and risk reduction management sectors. The Chilean government utilized a mixed decentralized model for recovery management with strong direction from the national-level ministries and subnational planning and housing efforts at the regional and municipal levels. The national recovery plan guiding principles are used in this paper as a framework for progress. In 12 months, a series of temporary shelter villages and a system of recovery housing subsidies were established; risk-based land use plans were conducted in various coastal areas; a finance plan was adopted; changes to the national emergency management agency were made; and rapid payment of insurance claims were completed. Conflicts did arise related to the speed of housing recovery support, expropriation of land sites as future tsunami protection barriers, and extent of public participation in recovery plan making.