The most convincing argument I could make is that the government could step in and keep the insurance agencies solvent. Sort of a too-big-to-fail situation.
Look at Hurricane Katrina. FEMA will not bail you out of a disaster that affects just you, but they will step in for one that affects lots of people.
Needs to hit the news cycle.
Of course, that’s probably still an argument for dropping insurance…
That argument is true though.
Build your house on the beach, a flood zone, top of a cliff, wherever. And insure it.
But don't expect the taxpayer to subsidize your risk. (Though I suspect they are...)