Why is the burden on insurance companies to make up for individual poor decisions?
In some cases it makes sense to socialise the losses, but I'm not convinced this is one of them.
Insurance Companies do need to make a profit and Local, State and Fed Gov is allowing building in very risky areas. Just look at Florida, that is a very risky area for weather and sea rise.
So in reality the burden is falling on Insurance Companies. High rates will in a way prevent building in those areas.