I know people on the FAIR plan and for a typical house it is not $20K per year. The average FAIR plan cost is like $3K so tack that onto the cost of the rest of your insurance and maybe you are looking at $8K from what friends I know who have it have said. That is definitely more than I pay now but not enough more to make me sell.
Remember, most of the houses that burned were worth $1-2M and the new houses going in will probably sell for more because they are brand new. No, I am not concerned about a crash. In fact, I think the opposite will happen and prices will be higher here than before the fire.