This is heartbreaking. The storage facility insurance scam is one that needs to be investigated by the government. It's a tremendous rip off and covers nothing.
The famous Lloyds of London started as a gambling coffee house. Gambling and insurance are closely related, and offer the same bargain: the house always wins.
I wonder if an insurance company operated as a co-op would be a better arrangement. Interested parties pooling money to pay out to the one unfortunate one who has a disaster. Could potentially invest the pool in super low risk investments as well for a little upside.
Mutual insurance companies have been a thing for hundreds of years. Some well known US mutual insurance companies are State Farm, Amica, Mutual of Omaha, and most non Elevance Blue Cross Blue Shield affiliated insurance companies.