"...insurance...whether the policy holder makes good choices or bad is also part of that process and is reflected in his or hers' premium cost..."

Yup. When we bought our stick house in the Sierra foothills, our fire insurance premiums were, at least in part, based upon the distance, in feet, to the nearest fire hydrant, and in 1/10 mile to the nearest fire station. We were pretty close to both, so had somewhat lower premiums. Those who prefer being farther out in the boonies, if they even get fire insurance, pay a lot more. That is their choice. But if they chose not to have fire insurance, "we" shouldn't have to rebuild their house if it burns down...