And the state faces the prospect of a substatial portions of its residents having to abandon their homes and leave the state.
If they can't get insurance or afford the premiums, what other choice will they have?
The mortgage company isn't going to sit there and permit uninsured homes.
Landlords with large holdings are really in trouble.
Well, they could. They already have the risk of a home losing value, or a homeowner damaging a home in a way not covered by insurance, or a flood, etc. They charge interest on the mortgage, and part of that is to cover losses from some mortgages going bad in some way that can't be recovered by selling the property.
A lender would only have to raise their interest rates, in exchange for not requiring insurance.
Of course, a homeowner would still be faced with the loss of their house and property in a disaster.