Hopefully insurance costs will not be extracted throughout the entire country. The insurance rates must reflect the true cost of residing in hurricane alley.
https://en.wikipedia.org/wiki/National_Flood_Insurance_Progr...
>As of August 2017, the program insured about 5 million homes (down from about 5.5 million homes in April 2010), the majority of which are in Texas and Florida.[3][4] The cost of the insurance program was fully covered by its premiums until the end of 2004, but it has had to steadily borrow funds since, primarily due to Hurricane Katrina and Hurricane Sandy, accumulating $25 billion of debt by August 2017.[3][5] In October 2017, Congress cancelled $16 billion of NFIP debt, making it possible for the program to pay claims. The NFIP owes $20.525 billion to the U.S. as of December 2020.[6]
If I built a house that could not manage a foot of snow on it's roof in Maine without collapsing, and every year it collapsed got a big check from the feds to rebuild the exact same structure in the exact same place, surely someone would be willing to tell me I'm being stupid?
It's literally Einstein's definition of "insanity"
Texas and Florida might need changes, but losses from Sandy aren’t the reason.
That definition of insanity was not invented by Einstein, nor did he ever say it.
As a point of comparison, however, up here in northern Illinois, you can get 2-3x the replacement coverage from a name-brand national insurance company for that price. And we do have tornado risk.
Which is to say that your insurance is expensive, but I wouldn't call it a barrier to living there. Much like property taxes - if you saw my bill, you'd probably fall out of your chair. Turns out the total cost is high everywhere. ;)
It still doesn't save your home if you build at 5ft above sea level and a hurricane brings 15ft of storm surge.
Running a functioning insurance?
If you want to pay rates which allow them to rebuild your home for you every ten years (annual rate = your home's cost / 10), I'm sure they'd be more than happy to do it and collect their small profit.
Not sure about the US but in Australia flood insurance has skyrocketed nationwide after the last few years of extreme flood events, even people living on the top of hills pay more for general policies.