“Average homeowners insurance policy is $6,000 per year.”
If people think the rates are too high they might be allowed to buy co-insurance shares secured by a bank CD or brokerage account.
Really? And how much does one need in reserve to obtain a co insurance share?
Forget this question. Google says you need 80% of value.
https://www.investopedia.com/terms/c/coinsurance-formula.asp
So for a homeowner with a $400,000 home they need a reserve of $320,000.
Ouch.