Or maybe the price of homes in those mountain areas should come down to reflect the high risk of fire, and inability to insure homes in those areas.

Insurance is a scam that leads to a disconnect between the value of things and what people can afford to pay for them, such as health care, which leads to an artificial reduction in financial risk, which leads to reckless spending by the insurance industry, which leads to artificially high prices, which only leads to more people to need insurance, because they increasingly can’t afford to pay for housing and healthcare on their own income.

When insurance pool/scam collapses, it’s just the government, i.e. taxpayers, i.e. you and me, left holding the bag anyway.