That article needs work, and lacks historical context. The first such organization was the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire, established by Benj. Franklin in 1752. They're still in business.[1]

Originally, they sold permanent fire insurance. You paid premiums for some number of years, and were then paid up for the life of the building. The building can only burn down once, after all.

[1] http://www.contributionship.com/