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?

Economic losses and damage are an estimated $135 billion and $150 billion, the costliest fire event in US history. Hurricane Helene in six states last fall caused up to $250 billion in damage.

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.