Cost to replace annual fire loss in CA?

Not an insurance pro... Wondering about how bad the losses would have to get to break insurance coverage in rough terms. At what point of losses does fire insurance exceed ability of homeowners to pay?

Question: How much roughly would it cost to insure each year for burned houses? Can you verify or fix these rough numbers?

• There are about 7.8M single-family and ADU houses in California.
• Average house price is a bit less than $1M,
• Anyway if 20,000 houses burn in a year, average $1M value (ignoring land value), then $20B in burned houses
• Divided into the total number of houses (assuming 100% insurance rate) thats $2,500 per house per year
• So figuring 100% markup ( and ignoring value of appreciating reserves at the insurance co. and actual replacement costs)
• That's an average cost per home of $5000 in today's fire situation.