At some point we need the federal government to step in to provide wildfire insurance a la federal flood insurance. It will have to be reworked for CA considering the flood insurance only goes up to 250k.
Or we could incentivize people not to live in places with wildfire risk by NOT offering insurance (with some sort of graded phase-out for people already living there).
The federal government should not subsidize people to live in places so risky that private insurers refuse to offer coverage.
Don’t worry, California and other states with wildfire risk are not swing states so there’s not much chance of something similar to the NFIP being created.