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The blaze is an example of how wildfires are now prevalent throughout the year in California.
Governor Gavin Newsom said he's budgeting $75 million to help communities deal with the threat.
The insurance, called a solar-revenue put and backed by Swiss Re, guarantees minimum revenue.
Michael has the potential to become a major hurricane by late Tuesday.
Dozens of explosions and fires left at least one person dead and 13 injured and displaced 8,600 customers.