If you're wealthy enough or can pay cash for a modest property, you self insure. The only folks who cannot afford it are those who need a mortgage (requiring hazard/hurricane insurance) and cannot carry the monthly payment for the mortgage, taxes, and insurance (which can be upwards of $3k-$4k/month at current real estate price levels, even with a generous down payment).

Its a bad investment for your average homeowner considering forward curve of equity return and carrying costs, but its the cost of lifestyle if you're wealthy.