State authorities previously listed the Palisades as one of the five Southern California areas with the highest concentration of potential wildfire risks. The community also is among the areas most impacted by an unavailability of insurance coverage.

The state’s insurance industry was reformed in late 2024 to promote coverage in disaster-prone areas. Tens of billions in fire damage will stress-test the new regime.

California had just set new rules for insurance companies, aimed at enticing insurers who had left the state, to return to the California market and resume writing policies for people in high-risk areas.