Los Angeles Wildfires

With inventory reduced and fire risk increased, both home prices and insurance rates could rise in Southern California.

Insurance companies have a surplus to help pay out claims, but that doesn't mean an insurer will be available in your state.

"We're never going to get to affordability if we don't get insurers back into California. And the way we do that is by bringing down the risk," said Ricardo Lara, the California Insurance Commissioner.

Claire Contreras, an elementary school teacher, reflects on the challenges of trying to find long-term places to stay after losing her home.

The fires in Los Angeles "could make this the costliest insured loss due to wildfires in history globally," said Karen Collins with the American Property Casualty Insurance Association.

"Twin challenges" arise as Los Angeles continues to face massive wildfire destruction in a tight housing market.