The dutch aren't insured against a dike breaking (Which has its own history).

But the dikes have been collectively maintained through laws and regulation from a local semi-democratic system for 800 years (separate from government). It was a necessity as 1 delinquent could screw up everything.

https://en.wikipedia.org/wiki/Water_board_(Netherlands)

The point is that the costs (to build the dikes) are fully internalized by the people who live there, rather than being cross-subsidized by people far away.