Most people dont know how to use insurance. They buy too much coverage, and have deductibles that are way too low.
“deductibles that are way too low.”
The wealthy can handle high deductibles and still get insurance for truly catastrophic outcomes—that is wiser imho than fully dropping the insurance.
On Guam I kept a $3500 deductible on our Home insurance. The house had concrete walls, and a concrete roof with ceramic floors. Nothing to burn or for termites to eat.
You can also reduce the coverage for the possessions inside the home.