The Los Angeles wildfires, which have ravaged more than 40,000 acres and killed at least two dozen people, are magnifying another crisis.

Insurance companies pulling back policies and in some cases pulling out entirely from areas considered too high of a risk.

And while New Jersey may not be home to the largest amount of natural disasters in the country, it's among the top ten states in the nation where non-renewal rates are surging.

Senior correspondent Brenda Flanagan reports.

The picture is worth a thousand words, but the estimated property loss from California's wildfires tops $20 billion.

Insurance companies like State Farm had already dumped homeowner policies here last summer, reducing their exposure to risk.

The industry's taking evasive maneuvers nationwide, including here in New Jersey.

It's a volatile marketplace, says advocate Doug O'Malley.

It's really a game of Jenga for one extreme weather event potentially topple the entire market in a region.

So, you know, when we talk about where we are here in New Jersey, we are not immune to what's happening in California.

And honestly, the reason big reason why we're seeing home insurance rates increase in New Jersey is because of the increase of climate disasters across the entire country.

I have a house on the shore and I was told, sorry, we are dropping you from one insurance company.

But in the same letter they said, But luckily we found another company who wants to take over your policy.

Clinton, Andrews homes, it's down the shore and hasn't suffered damage.

But a recent study shows three New Jersey counties, Cape May, Atlantic and Hudson, are in the top 100 nationwide, with the biggest jump in non-renewal rates by insurance companies between 2018 and 2023.

Typically, the pattern is first, they raise prices when they can't raise prices anymore, or because it's a regulated price.

If the state insurance adjuster doesn't allow them to raise prices, then they'll exit from a market.

Insurance premiums soared in coastal areas threatened by extreme climate events.

But that's not the only risk.

Jersey lost 11,000 acres to 1400 wildfire fires last year.

Inland flooding from Ida damaged or destroyed homes across the state.

FEMA's mapped out New Jersey's projected annual losses from hurricanes, coastal flooding and wildfires showing higher vulnerabilities by 2050.

A lot of people won't necessarily see New Jersey as one of the top problem children with there, but we certainly are.

Doug Quinn lost his home in Superstorm Sandy and now offers to help folks hit by weather disasters across the nation.

He's currently in California offering to help homeowners there with insurance claims.

We go to disasters and we've got two disasters all over the country.

And I hear from people it's never flooded here before.

We've never had a tornado here before.

It's never burned here before.

There's an increase in the likelihood of peril there.

And therefore, there's an increase in likelihood of the cost to insure that pearl.

And now the next thing we will start to see is some carriers decide it's too much risk.

New Jersey's insurance ombudsman didn't comment.

The state does have what's called the Fair plan, where consumers who can't get coverage through a company can apply via the Insurance Underwriting Association.

But it's an expensive last ditch option.

So this ultimately is the market is speaking and saying it's too risky to live in certain communities.

We don't want to get to that place, New Jersey.

But the writing is on the wall for the insurance industry.

An industry lobbyist in a general statement noted property insurance losses have been escalating.

And it's not just the weather.

Adding high inflation, overbuilding in high risk areas and regulated area costs share the blame.

Companies are ditching certain counties altogether.

California's a warning bell.

Andrews says their insurance market is about to be broken and there's just too much for the private companies to handle in terms of the risk.

We talk about the money a lot, but it also comes back to the safety of your family.

Do you want to put your children to bed at night in a home that has been deemed uninsurable because of the risk?

Quinn rebuilt his home after Sandy, but elevated it ten feet and still lives in Toms River.

I'm Brenda Flanagan, NJ.

Spotlight News.