Los Angeles is reeling from the most destructive wildfires in its history, and firefighters are struggling to contain the devastating blaze.

The massive fires that have destroyed much of Pacific Palisades and demolished more than 2,000 homes in Los Angeles County threaten an effort to fix California's troubled home insurance market.

State Farm canceled hundreds of homeowners' policies last summer in the Pacific Palisades area, now affected by severe wildfires. Many insurers defended the move due to rising wildfire risks and regulations limiting premium increases.