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.

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.

The destruction caused by the Los Angeles-area wildfires is almost certain to rank as one of the most costly natural disasters in U.S. history.

Analysts estimate the insured losses in Pacific Palisades alone could approach $10 billion, squeezing insurance companies at a time when some have been pulling back policies.

Wildfires continued to rage in Los Angeles late Thursday, decimating neighborhoods and raising questions about the future of California’s already troubled property insurance market.