As he looks at the ruins of his home razed when deadly fires tore through the Los Angeles area, Sebastian Harrison knows it will never be the same again, because he was not insured.

Many people fear that their insurance policies won't cover the rebuild cost and that future premiums will be astronomical.

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

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The massive fires that have destroyed much of Pacific Palisades and demolished thousands of homes and structures in Los Angeles County threaten an effort to fix California's troubled home insurance market.

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.

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

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

"The FAIR Plan, a not-for-profit catastrophe insurer, has the payment mechanisms in place to ensure all covered claims will be paid."

California's Fair Plan, the state's insurer of last resort, may be unable to pay billions in claims arising from the Los Angeles fires and may require a bailout that could ultimately be paid by homeowners statewide.