It’s hard for new landlords. People that bought houses to rent compete against property owners of paid off homes or people with 3% mortgages.

Tacking on optional insurance products on a property that’s already in the red further encourages landlords to push up rents prices.

Well yeah, it's also hard for any random person to start an oil conglomerate having to compete against ExxonMobil

Maybe people shouldn't be buying homes for the purpose of renting them then?

This form of insurance is exceeding expensive and exceedingly rare. Large buildings self-insure (by having a ton of doors) and small landlords don't want to pay it.

Depends on the country I guess, but in France it's about 3% of the rent.

For that price they will pay you the rent if the tenant is not paying, and take care of the getting paid by the tenant.

If landlords don't want to pay that, then they accept the risk of having to deal with a tenant who doesn't pay.

It might be more common in Europe, I've never seen it in the US (but maybe some property managers offer that as part of their 5-10% cut of the rent).