A house burns as residents try to escape the site in Pacific Palisades. A fast-moving wildfire has forced thousands to evacuate, with officials warning that worsening winds could further escalate the blaze.

This story was originally published by Grist and is reproduced here as part of the Climate Desk collaboration.

On Tuesday, after a ferocious Santa Ana windstorm blew through Southern California, a severe brush fire broke out in the wealthy Pacific Palisades neighborhood of Los Angeles, burning at least 1,000 structures and forcing hundreds of thousands of residents to evacuate as of Thursday morning. Another large brush fire broke out near Pasadena around the same time, killing at least two people. Together the two blazes threatened some of the most valuable homes and businesses in the United States. The damage from the Palisades Fire alone could exceed $10 billion, according to a preliminary estimate from JP Morgan.

If this estimate holds true, it will test insurers’ commitment to a market that has been teetering on the verge of collapse for the better part of a decade now. Over the past five years, California has become a poster child for what climate-fueled weather disasters can do to a state’s home insurance market. Following a rash of historic wildfires in 2017 and 2018, insurance companies have fled the state, dropped tens of thousands of customers in flammable areas, and raised prices by double-digit percentages.

Until recently, elected officials have taken few major steps to address the crisis. But late last month, after more than a year of drafting, California’s insurance commissioner unveiled a set of reforms that he claimed will bring companies back into the fold as they take effect this year.

“This is a historic moment for California,” said Ricardo Lara, the state’s insurance commissioner, when he revealed the........

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