Usually for cases where insurance is not feasible because of increased risk of for example wild fires, the government steps in and an insurance pool is created to cover the costs of rebuilding and temporary relocation. But it happens only after insurance companies start to retreat more broadly. I assume they cannot stop paying out especially fire claims because the costs that need to be reimbursed are immediate and will be agreed to when the fire is being reported - which usually happens within hours. All in all it would be kind of dump of an insurer to refuse payout in a case like a fire. There either was a fire or there wasn’t. So not much room for push-back I would assume. But not a lawyer so I am just being hopeful here haha.