(This post should have appeared yesterday, but reality intruded on my intentions.)
I live outside of Greenville, California, once upon a time a small mountain town, since incinerated in the Dixie fire, and now an array of mostly cleared and sanitized lots hosting the remains of our magnificent, shade bearing, nourishing, and beautiful oak trees.
Who can rebuild, want to or not? Who wants to rebuild, if they can? Many here are committed, and some have moved on. Many were uninsured, not by choice, but redlined by the insurance companies, ostensibly due to the risk of fire.
If one owns expensive real estate on the Florida coast, mandated insurance may allow one to rebuild in the same vulnerable location, repeatedly, regardless of the risk of destruction by hurricanes and flooding. If one owns a modest home in a rural mountain town in the USA there is no such mandate. You will be on your own, along with the majority of your community.
Do remember that if the insurance companies appear at risk of collapse, you will be taxed to save them.