This is a normal practise in UK. If you have a mortgage your Bank will ensure it & debit your account accordingly each year. If you do not have an mortgage than perhaps you property is not Insured.
The community does not get involved in Insurance for above reasons and if they have insured than the properties are insured twice. Something I am pretty sure is illegal.
Insurance industry work on fear & what if. I personally do not bother with contents Insurance as valueable with emotional values cannot be replaced. Other items will have a depreciated value and there is the excess, police reprt photo copies of purchase invoices.