A recent rule change could cause a spike in insurance premium for homeowners across California, as the costs of the Los Angeles area wildfires are passed onto them in a way that was not allowed in the past.

The fires in southern California could be the biggest and most expensive natural disaster in history. With insurance companies possibly paying out billions in damages, insurance rates in Siouxland could be affected.

"The FAIR Plan, a not-for-profit catastrophe insurer, has the payment mechanisms in place to ensure all covered claims will be paid."

California's Fair Plan, the state's insurer of last resort, may be unable to pay billions in claims arising from the Los Angeles fires and may require a bailout that could ultimately be paid by homeowners statewide.

The devastating wildfires burning in Southern California could have financial ramifications for residents across the state. California Insurance Commissioner Ricardo Lara Changes confirmed that recent policy changes would allow private companies to pass costs along to all customers in the state if they are asked to cover the costs in the