California

Insurers had already doled out more than $12 billion to pay for wildfire damages as of early March, according to California state officials.

California is emerging from its wettest time of the year with new fire and drought risks.

The measure applies to mortgages closed in the months prior to the Southern California wildfires, which are now experiencing early-stage distress.

Offices, apartment buildings and retail locations in Los Angeles face a tangle of difficulties as the smoke clears from January's wildfires. High on the list is inadequate insurance, a common problem in California.

California's insurer of last resort is careening toward another hot and dry summer with its coffers already strained. That's raising the prospect that state residents will need to pick up the bill for more funds.

Wall Street brokers have started selling insurers' claims tied to Los Angeles' deadly wildfires, which may trigger a payout from the utilities blamed for the destruction, according to people familiar with the matter.

While the 22% average increase for homeowners insurance is provisionally approved by California's regulator, the carrier will have to get capital from its parent company to help cover its risks.

Estimates for the financial toll of the blazes range from $30 billion to as high as $250 billion, as homeowners grapple with premium hikes and non-renewals.

The scope of the disaster depends on whether it's insured losses, property damage or overall economic impact.

Fremont, a Bay Area city of 226,000, in September became the first municipality in the nation to buy its own citywide flood insurance policy.