Climate change and the housing crisis means both the cost of replacing a home AND the likelihood of needing to is going up. They may not be on the brink of going under, but may be trying to avoid getting into that position.
It is an enormous problem. When a property becomes un-insurable it loses value. When that happens to a TON of property it’ll have massive knock ons. Something like 1/3rd of all assets in the US are commercial realestate. This next adjustment will not be pretty, and the real irony is a ton of people who got priced out of home ownership in the first place are going to suffer no matter what.