There are a lot of places in California that I would assume are practically uninsurable against fire at this point.

As the risk of fire approaches 100%, the cost of insurance goes up to the replacement cost of the house (plus insurance operating cost). It doesn’t make sense as a product for anyone at that point, you’re just going to have to self-insure then.

Basically the same as offering flood insurance for places with flood risk approaching 100% (looking at you, Florida)