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 massive fires that have destroyed much of Pacific Palisades and demolished thousands of homes and structures in Los Angeles County threaten an effort to fix California's troubled home insurance market.

Key Takeaways The wildfires that have decimated neighborhoods in Los Angeles this week came just months after California's largest property insurer began allowing thousands of policies to lapse.Insurers,