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 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 reside

In recent years, insurers like Allstate, American National, The Hartford and State Farm have stopped renewing policies or issuing new policies for California homeowners.

Analysts are evaluating the financial impact of the wildfires that have charred hillsides, homes, and streets in Los Angeles County, with initial estimates suggesting total insured losses could reach as high as $20 billion.

The wind-driven wildfires burning out of control in the Los Angeles area couldn't have emerged at a more perilous moment for California's homeowners, as officials try to rehab what they concede is a deepening "insurance crisis.