As Los Angeles construction worker Ivan De La Torre surveyed a landscape of smoking wreckage in fire-ravaged Altadena, a question nagged at him: how would insurance companies cover the cost of rebuilding an entire neighborhood?

The Palisades Fire could cause more than $10 billion in damages, further straining the state’s fragile insurance market. On Tuesday, after a ferocious Santa Ana windstorm blew through Southern California,

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.