Sure they could, they could also pay for our auto insurance too, but then people would complain about that as well. The intent is to provide a safety net, and that's exactly what the coverage does. Plenty of people don't carry any insurance at all, or minimal insurance. It's not going to happen to ME...so let's roll the dice. My uncle owns a multi million dollar home in the FL, but doesn't carry h/o insurance. The 10k premium is to much for him. Yes, he can take the hit financially if the place gets blown away, but jeez...talk about penny wise and pound foolish.

I personally know a doctor, as in MD doctor who owned his own home, and two rental home properties. Goes out one night, has a few pops, goes to drive home and ended up hitting a pedestrian and breaking her leg and hip. No worries right, he's loaded and has insurance. Well, it was much cheaper to get the minimum coverage of 20,000 for liability insurance. Fast forward two years. His insurance company pays the 20k of course, he had to sell both of his investment homes AND take a note out on his primary residence in order to resolve the claim. He's lucky it wasn't more serious, his home and practice could have been exposed.

paying for insurance sucks, paying out of pocket sucks more.