There’s going to be lots of cleanup that will be paid for by city and state governments because it’s shared infrastructure and they don’t want to leave cleanup of toxic materials to homeowners that might skimp on it so it washes into the sewer system next time it rains.

It also depends on how many houses were insured by the state insurer CalFAIR. It’s over half a century old and has never been bailed out (funded entirely by premiums) but this is the most destructive fire in Calfironia history so we’ll see how well that holds up to this stress test.

No. The insurance companies won't cover these houses. They called it an "insurance crisis" and then made a state insurance system which will likely go bankrupt and have to be bailed out because of this fire:

https://en.wikipedia.org/wiki/California_FAIR_Plan

Insurance in very high risk areas practically cannot exist without governmental subsidies.