Emergency response and recovery has always been a problem of the commonwealth, not of individuals. Private insurance is and has always been a scam.
The cost of lives lost became conspicuous during the prison boom of the 1980s in which the Reagan—George H. W. Bush tough on crime policies literally more than decimated neighborhood populations. When police busted someone for possession, or loitering or contempt of cop (or was gunned down in spite) it wasn’t just an alleged thug removed from society, but also typically an employee, a parent, a renter, a consumer who bought food and paid bills. (The You’re Wrong About pod, amusingly on Dan Quayle vs. Murphy Brown gets into the 80s era conservative policies of broken window policing and harsh sentences for nonviolent petty crime)
So whenever someone’s life is demolished by a natural disaster, an untreated health problem, a vehicle collision, a rampage killing, police on a bender, whatever, it hits like a bomb in the community. Almost everyone has others who depend on them, as family, as a friend, as a customer or laborer. And when something makes them disappear, collateral crises manifest like shrapnel.