How the wildfires in Los Angeles area could affect California's home insurance market

The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk. Hundreds of thousands of California homeowners have struggled to find coverage in recent years. Now, the vast property damage in a disaster-prone state with high real estate prices and an uncertain insurance landscape could make coverage more expensive and even harder to find. One area likely to feel the impact is Pacific Palisades. This week’s wildfire in the affluent community has been named as the most destructive in Los Angeles' modern history.