[rhizome]

My understanding is that the reason is because that's how insurance works.

[philipodonnell]

Kinda. Insurance is about a pooling of risks, that does not mean that every risk level must be in the same pool. Houses that are built in flood-prone areas are forced to be in different insurance pools with higher rates than other houses because the risk profiles are different.

[rhizome]

You know what I meant. OP only mentioned undifferentiated "someones."

[thaumasiotes]

Undifferentiated? They are specifically labeled as "higher risk".