Let the market for insurance, like all other markets, be ruled by greed. Greedy insurance companies would make it affordable for home-owners to purchase insurance for the valuables they keep. Under open competition, greed of the private sector serves the public good far more effectively and efficiently than the alleged altruism of public servants. Strict liability, a free insurance market, and a better legal system would solve the problem of shoddy construction quickly and permanently. Well-defined and properly enforced property rights are critical for the operation of markets.
Property rights are the primary responsibility of the government.
Let it define them and then get out of the way. Standards are needed for quality construction. I am not against standards but against government monopoly in defining and enforcing them. Market regulation is preferable to government regulation. Consumer interests would be better served by competition in all areas, not just in the production of goods and services, but also in formulation of standards.