State Farm, one of the largest homeowners insurance providers, reportedly canceled hundreds of policies in the Pacific Palisades region of Los Angeles County.

The insurance company canceled thousands of California homeowners' insurance policies last year in an attempt to avoid "financial failure."

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.