When you are in a situation where the only insurance available to you is a “last resort” policy, that means the market has determined that it is no longer financially viable to insure a particular region.
Commercial property insurance is a for profit industry. They are essentially saying with their money that this location is an “at your own risk” kind of place.
Now from a state government perspective, that’s a bad thing. They don’t want to lose their tax base or their population. So they spend money (to a point) to provide basic/minimum coverage because that will be enough to make most people stay.
Hopefully that explains the why behind the coverage being shitty.
It’s not overpriced if it’s your only option. That’s capitalism at play. The offering from state government is socialism at play.