Couple hugs after they manage to recover a keepsake bracelet in the rubble of their destroyed home, destroyed by the wildfire in Paradise, California, on Nov. 15, 2018. Marcus Yam | Los Angeles Times | Getty Images

California's destructive wildfires could pressure home insurers operating in the state, coming as insured losses have the potential to approach around $6.8 billion from the current fires. More than 9,700 homes have been destroyed in the catastrophic Camp Fire still burning in Northern California and as of Friday evening at least 71 were confirmed dead and more than 1,000 still unaccounted for. Further south in the state, nearly 800 structures were destroyed or damaged in the Woolsey Fire, a blaze in Ventura and LA counties with three confirmed fatalities. The two big November fires in California follow the state's expensive fire season in 2017 when insurers were hit by underwriting losses of nearly $13 billion from wildfires and mudslides. Despite the big losses, the insurers won't be able to immediately pass along the cost to customers since the state has a highly regulated industry. "They are not permitted to take all the given years losses and cram them into next year's rates," California Insurance Commissioner Dave Jones told CNBC in an interview Friday. A state ordinance limits any immediate rate hikes and instead spreads repayment of property and casualty insurance payouts over the next twenty years. Insurers also have to justify their rate insurance increases to the state insurance regulator but are entitled to make what Jones calls a "modest profit." "California wildfires are becoming more commonplace, and regulatory risk is on the rise," S&P Global Ratings credit analyst Brian Suozzo said in a report this week. "In addition, the tight California regulatory body could make it challenging for insurers to obtain adequate future pricing."

An aerial view of Paradise, California off of Clark Road on Nov. 15, 2018. The Camp Fire has burned more than 7,000 structures in Paradise. Carolyn Cole | Los Angeles Times | Getty Images

According to S&P, it's "too early to forecast industry losses accurately, though we expect the magnitude of losses to be less than last year's events." A report from Moody's Investor Service estimates losses could approach about $6.8 billion. A figure by Morgan Stanley put the estimate at closer to $4 billion. Homeowners who live in what scientists call "wildland-urban interface" areas pay on average about 40 percent more for home insurance than people elsewhere, according to the state insurance commissioner. Californians with homes in high-risk fire areas will likely continue to bear the brunt of future rate hikes. Homeowners also can expect additional instances where insurers decide not to write some policies. "I would anticipate that we are going to see rates continue to go up in the wildland-urban interface area, based on the risk and the enormity of the losses," Jones said. "We're looking at a future where we're going to have more frequent and more severe fires, and that's already having...an impact on insurance availability and pricing." In 2017, there were about 6,800 single-family homes that were completely destroyed by California wildfires, primarily during the October of 2017 firestorms that swept through Northern California's wine country region. The state insurance regulator estimates wildfires last year caused about $12.6 billion in insured losses. "Obviously, 2017 was a very tough year from the standpoint of underwriting losses," said Jones. "And 2018 is shaping up to be an equally tough year." The Camp Fire about 90 miles north of Sacramento incinerated most of the town of Paradise. The 146,000-acre blaze was listed at 50 percent contained as of Friday evening. President Donald Trump is scheduled to meet with some of the people impacted by the disaster on Saturday.

Workers check for gas lines amid the damaged homes from the Woolsey Fire on Filaree Heights Road in Malibu, California on November 13, 2018. FREDERIC J. BROWN | AFP | Getty Images