The California Department of Insurance announced Monday that the final step of its regulatory overhaul is in place after more than a year in the works, signifying the largest change in regulations for 30 years in an attempt to stem the state’s insurance availability crisis.

The regulation mandates insurers to cover wildfire-prone areas, underwriting policies for at least 85% of the state's market share.

To hear insurance companies tell it, homeowners insurance policy premiums in California are so low the companies can't bear the risk of writing policies as

When a major wildfire hits, insurance companies call on insurance of their own — and starting next year, they’ll be able to charge consumers for part of the millions of dollars they spend on it. Insurance companies purchase reinsurance for the same reasons homeowners purchase home insurance: to have a back up pool of money to tap into in case of an overwhelming catastrophic loss.