U.S. insurance stocks slid on Friday as analysts estimated insured losses from the wildfires menacing Los Angeles could reach as high as $20 billion, potentially making it the costliest disaster in California's history.

The Los Angeles wildfires continue to burn out of control, with the death toll now at seven and expected to climb. Nearly 180,000 people have been ordered to evacuate and at least 10,000 buildings have been destroyed, L.A. Sheriff Robert Luna stating in a press conference that some of the impacted areas "look like a bomb was dropped in them."

State authorities previously listed the Palisades as one of the five Southern California areas with the highest concentration of potential wildfire risks. The community also is among the areas most impacted by an unavailability of insurance coverage.