Typically insurance payment doesn't cover everything. You will almost always be at some loss, often much greater than year worth of rent. Also, I'd suspect your future premium rates would rise given insurance companies will see increased risk due to your history of getting bad tenants.

Insurance payments being equal, I don't think it needs to be said that not wanting your things to be set on fire is a reasonable ask.

Problem tenants are different levels of problem in different jurisdictions. In San Francisco, I can imagine a landlord being perfectly happy to eat the distress of a tenant burning down their property, given that in the same stroke they solved the problem of their occupancy of the property.