The Pacific Palisades area ravaged by wildfires is one of the most expensive neighborhoods, home to Hollywood A-Listers and multimillion dollar mansions. And ahead of this week's disaster, its insurance costs were among the most affordable in the country.

The wind-driven wildfires burning out of control in the Los Angeles area couldn't have emerged at a more perilous moment for California's homeowners, as officials try to rehab what they concede is a deepening "insurance crisis.

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