At a March hearing in which CA Fair Plan President Victoria Roach explained that it had just $200 million of cash on hand, with $450 billion of exposure in the state. As infernos burn across Los Angeles County, torching at least 28,000 acres, analysts at Accuweather estimate losses could reach $52 to $57 billion. It is a blow to the hundreds of insurers operating in California, but a particular challenge for the state’s insurer of last resort.

“The plan of last resort, is becoming the de facto insurance in the state.”

The insurance market is one way of signaling where people should and shouldn’t live; more expensive plans may help guide people from high-risk areas.

https://time.com/7205849/los-angeles-fires-insurance/

 

My guess – LA will end up like Lahaina where citizens were not allowed back for MANY months and the ground considered too toxic to rebuild without years long process. The insurance industry will abandon policy holders (as they did in Maui) and ordinary citizens will be ignored as the state seizes land & converts the wildfire areas into a “new vision of LA” that appears after the crisis subsides. Lots of time to speculate as the fires are no where close to being contained …….there is more burning to come ….