Don't people who live in higher risk homes already pay higher premiums?

Do you believe that's not the case? Or that insurers are giving them discounts? Or are the risks miscalculated?

I'm in the industry: regarding California,the answer is that they aren't paying high enough premiums. Regulators have refused to allow catastrophe modeling to set rates, so fire prone areas are effectively getting a discount.

Ah, that was what I was missing, thank you :)...