It's not just an incentive to home buyers, it's a shift-left that will make it all the way to developers. Homes will only be built that are affordably insurable, whether that means better location or more disaster-proof construction.

I have sympathy for people living in a place where FEMA redraws the flood plain maps. They bought a home outside of the flood zone and with the stroke of a pen, their home is now inside the zone and can no longer afford to live there.

A group in Houston sued the city there over something like this and their argument was that redrawing the map was an unconstitutional taking of the land.

Yeah. Though in the US flood insurance of last resort is oddly a government thing.

https://en.m.wikipedia.org/wiki/National_Flood_Insurance_Pro...