I don't know if what you said about the insurance is correct or not, but if it is then that should have been factored into the price that Khosla paid to get the

I don't know if what you said about the insurance is correct or not, but if it is then that should have been factored into the price that Khosla paid to get the land (and possibly the government's assessment of the land value). Nobody forced him to buy that property.