Banks, home insurance companies and health insurance companies share a business platform of collecting penalties or the denial of service to create the profit margins they expect.
To include the word 'ethical' in the same sentence containing these enterprises would be misguided.
These companies are able to do whatever they please.
Be aware, the time required to engage in this battle could put the requirements of your mortgage in conflict. Insurance, especailly the ramifications of FEMA & FLOOD, is going to become an alarming issue in the coming year.