The California crisis in homeowners insurance has only one real solution

"We estimate that 20% to 30% of homes in California have high exposure to wildfire risk, compared to the state’s outdated estimate of 12%. To price those risks, let’s use a simple example. If your home costs $1 million to replace and the expected likelihood of a wildfire loss has gone from a 1-in-400-years event to a 1-in-50-years event, then the premium required just to cover catastrophic wildfire risk increases from $2,500 per year to $20,000 per year. And that excludes all the other risks like theft and water damage.

In a state where the average home price is nearly $900,000 and an average premium hovers around $2,000, this increase is both economically infeasible and politically disastrous. "