UC Berkeley's Dave Jones, the former insurance commissioner of California, explains the stakes of the current wildfire emergency and what might happen next.

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 program guaranteeing fire insurance coverage for homeowners turned down by traditional companies, known as the California FAIR Plan​, could run out of money following the devastating destruction caused by the Palisades and Eaton fires.