A major problem is that Insurance is in fact in absolute terms relatively cheap, the average home policy in the US costs somewhere between $2000 and $2600. In higher risk areas it’s more, but not that much more when related to the problem that insurers face in assessing risk.

The difficulty is a practical one, the cost of actually doing a proper assessment for a particular home, and updating it (crucial questions insurers are things like the state of the roof? a new swimming pool? in a fire zone shrubbery close to the house? an extension? fireproof or fire resistant materials? mesh cinder barriers over soffits?) The problem is making that assessment actually cost money. The insurer is going to have to pay in assessor every year to do this and that’s going have to come out of maybe $2-3000.

It’s fair to say parametric insurance linked to strict code enforcement might help. But solutions to identifying and mitigating risk seem to be the central problem.