Like many Destination by Hyatt Residence properties, this appears to be a resort condo type of property. (You can also book units on Vrbo and Airbnb and who knows what other channels). Almost certainly many or all units are individually owned, rather than a single landlord with a Hyatt management contract. Non-refundable non-negotiable insurance is the individually-owned unit equivalent of a destination fee.

Good luck getting it waived in lieu of a deposit if it is a listed charge at the time of booking.