This is a really good point; the cost of excess capacity is effectively just an insurance policy that you buy ahead of time, lump sum, one time payment. I'm not

This is a really good point; the cost of excess capacity is effectively just an insurance policy that you buy ahead of time, lump sum, one time payment. I'm not sure you could replicate this with an actual insurance policy to collectivize the risk and reduce costs, at least not with the example of housing in a pandemic in mind.