I meant that at some point, with ever more costly and numerous disasters, the premium insurance companies would have to charge to be able to properly insure their clients would be too much for said clients to stomach, which would prevent anyone from getting anything insured. This has nothing to do with government interference. At some point the equation simply doesn't work anymore.
It still won't cause that. People will own less expensive things if the all in cost of owning them goes up. This is econ 101. People buy cheaper houses when interest rates go up and vice versa.
Tell that to people who can't even afford rent. Some goods are inelastic because people need them at any price. Housing prices are good example of that. This is also econ 101.
Take econ 101 again. "some goods are inelastic" isn't even a coherent sentence. You are out of your depth.