California’s plan that provides insurance to homeowners who can’t get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires, the state Insurance Department said Tuesday.

Insurers are estimating losses totaling billions of dollars from the Los Angeles wildfires, including assumed payments to allow for a bail out

The move will likely lead to higher costs for households across the state, and may push more insurers to leave, intensifying a home insurance crisis.