ALTADENA, Calif. — Kwynn Perry visited her home this weekend for the first time since the Eaton Fire started. It’s just ashes and rubble.

“This is our bedroom,” she says. “That is our bed, my antique bed.” It’s now just a blackened, twisted ruin.

Perry and her family leased the home and always had renter’s insurance to cover the expense of relocation and replacing their possessions. That is, until last year. “We were told nobody was insuring renters up this way. So, we had no choice,” she said. With no insurance, Kwynn, her husband Brian and son Ellison are relying on FEMA and a GoFundMe page.

In recent years, insurance companies have begun using sophisticated computer modeling and artificial intelligence to calculate risk in fire-prone areas. That led several companies to stop writing new policies for homeowners and renters in places like Altadena and Pacific Palisades. Janet Ruiz, with the Insurance Information Institute, says, “They did have to restrict coverage so that when we have catastrophes such as the one in Los Angeles, they can pay claims.”

Along with the destruction of lives and homes, the Los Angeles wildfires will also have a big impact on California’s insurance market. Some estimates put insured losses from the fires at more than $20 billion.

California law requires insurance companies to hold reserves adequate to pay out claims even in a catastrophe such as these fires. For that reason, Dave Jones, a former California Insurance Commissioner, doesn’t expect this event will push any companies into insolvency. Jones, who’s now at UC Berkeley’s Center for Law, Energy and the Environment, says, “It will be an earnings event for them as they say in the industry which means they won’t make profits this year for sure.

But homeowners will also have to help pay for the fires.