The same could be said of Gulf coast because hurricanes and floods which have been around a lot longer than wildfires but companies still rebuild and sell insurance in those places. Insurance companies can price in risk in other ways. Risk is aggregate. Insurance companies shouldn't be allowed off the hook. I do predict this time around you will see people (who primarily are Republican voters in California ) in these fire regions in California finally take the the impact seriously. They can leave the state and go where exactly as Jerry Brown said yesterday. There are fires in Utah, Colorado, Oregon and Washington. In the midwest you have tornado alley. In the gulf coast you have tornadoes and hurricanes. I expect more extreme weather across the world in coming years. The planet (not our planet) is trying to tell us something.