Insurance protects life and property (including future income). Until you wagered $100 on the Knicks winning, none of your property was threatened by them losing.

No.

And, in fact, there is a concept called an “insurable interest” that is intended to prevent this kind of thing.

If I buy an insurance contract that will pay me if your house burns down and then I burn down your house, then I’ve obviously committed arson, but I have also likely purchased that insurance contract illegally. And I don’t even need to burn down your house for that contract to be illegal.

(IANAL)

Of course not. If a building exists, there is a risk it burns down. Insurance just moves that risk around. The only way to eliminate the risk is to not build anything anywhere.