Senecio:
All insurance is risk based. People in a higher risk category pay a higher premium.
- Car Insurance. A car garaged in Ponsonby will have a different premium to one parked on the road in South Auckland
- Health Insurance. A person with a known history of a family genetic disorder will pay a higher premium than others
- Travel Insurance. Someone who plans to skydive or off piste ski will pay a higher premium
I don't understand why you're objecting to the same principles being applied to housing insurance?
earthquakes and other disasters affect large numbers. If lots of home owners and businesses are under insurred then the impact on the countries economy and wealth is greater. Speading the risk means more are adequately insured making recovery faster and lessens the economic impact.