The massive Palisades Fire broke out in Los Angeles on Tuesday afternoon, prompting mandatory evacuations affecting tens of thousands of people and highway closures. Later Tuesday, the Eaton Fire broke out in the foothills of Pasadena on the other side of Los Angeles County.

The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk.

It’s too soon to know the financial cost of the wildfires burning around Los Angeles. But the toll on California’s troubled insurance market could be enormous.