The insurance company canceled thousands of California homeowners' insurance policies last year in an attempt to avoid "financial failure."

FOX Business' Cheryl Casone joined 'Fox & Friends First' to discuss the insurance crisis in California as wildfires devastate Los Angeles and the broader concerns about the industry moving forward.

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

The Palisades Fire could cause more than $10 billion in damages, further straining the state’s fragile insurance market.

Several California insurers have cut policies in wildfire-prone areas of the state in recent years, leaving homeowners scrambling for options.

Many insurers paused coverage in parts of California or raised premiums sharply after the 2017 and 2018 wildfires led to huge losses for the industry.

The exodus of insurance companies leaving the California market because of wildfires and other natural disasters is growing, and may be made worse

As California grapples with the increasing threat of wildfires, the state's latest insurance plan aims to expand coverage for homeowners while preventing policies from being dropped. However, this well-intentioned strategy comes with a significant downside: a potential 40% increase in insurance premiums,