Sometimes the risk is too great for insurance companies to offer insurnce

When that happens the impact can appear cold and heartless but it’s also becoming a more common reality as insurance companies are impacted more often by events that require massive e payouts to thousands of victims.
That doesn’t mean that choosing not to pay out to insured victims is the right approach, it means that insurance companies need to re assess how they evaluate the increased risk and how that will impact future payouts.

This is not just a problem for California but a problem that Insurance companies around the world are having to deal with.
https://amp.cnn.com/cnn/2025/01/09/business/california-wildfires-homeowners-insurance