The property insurance is a general insurance on building which provides the basic coverage for loss or damage resulting from peril including Fire, Lighting and Explosion of domestic gas.
When government subsidized the property insurance, the premium payable by the Insured will reduce or will be zero because the government have chosen the bear the responsibility of paying premium on behalf of the Citizen.
This action of the government may make the insured more unnecessarily relaxed because they did not pay the full premium of the Property insurance themselves.
So therefore, the first option is correct that without government subsidized property insurance, people are more likely to be cognizant of the risks of building and living in fire-prone or flood-prone areas because their insurance costs will be higher.
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