The Palisades Fire could cause more than $10 billion in damages, further straining the state’s fragile insurance market. On Tuesday, after a ferocious Santa Ana windstorm blew through Southern California,

Industry officials warn of widespread economic damage on par with some of the biggest fire disasters in recent memory.

The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk.