You're only looking at step 1. If you recursively got everyone in dangerous areas to move, no one would live in California. If you live in a population center

You're only looking at step 1. If you recursively got everyone in dangerous areas to move, no one would live in California. If you live in a population center in California, the only reason why you aren't prone to wildfires is because of the people living around you that are. It's a scenario where everyone paying the same actually makes sense. Your insurance is that others are accepting the risk of losing all their personal belongings or even their lives - even if insurance will cover them financially. It's not the same as hurricanes or earthquakes.