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Sell the houses to who, bud?
(hexbear.net)
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Eh. In Malibu and Pacific Palisades the local nimbys will probably prevent anything like that unless they get a big kickback. I expect those towns will just be rebuilt even richer by people who are wealthy enough to not need financing and therefore not required to have insurance.
And I imagine LA city government will bend over backwards to install some sort of wildly expensive gadget meant to be like "Iron Dome for wildfires" that will probably be as effective as the original.