The devastating wildfires in Los Angeles have set off a significant crisis in the home insurance market, with insured losses expected to reach unprecedented levels. Estimates suggest damages may range from $30 billion to as high as $135 billion, drawing scrutiny on how insurance companies have handled policies before and after the fires. Reports indicate that several insurers canceled policies just before the fires, leaving many homeowners in peril. California’s Governor has intervened, banning insurance companies from canceling coverage for wildfire victims, citing the hardships already faced by affected families. As the situation develops, California homeowners are bracing for higher rates and increased scrutiny from insurers, with implications reaching beyond the state to affect markets across the country. Analysts warn that the fallout could signal a larger financial crisis as the home insurance sector struggles to adapt to the continual threat of natural disasters.