I understand your logic and I agree, when insurance companies grant claims to those whose homes have been damaged, they should have stricter rules and regulations about building codes. For crying out loud, why should insurance pay to rebuild the same homes in flood zones, time and time again? A flood zone is a flood zone and it will flood again and again. Monies should be spent to RELOCATE, not rebuild on the same water prone spot.
When my homeowner's premium went up, I called to inquire why. I was told that Hurricane Katrina was the cause of price hikes in my premium and everyone's premiums. That is not fair. I have been paying for homeowner's insurance since 1983 and have not made one single claim. I live on a hill and if my home ever should flood, the end of the world is near (yeah, I am exaggerating, but making a point).
If you look at the buildings in Europe and elsewhere in the world........some were build centuries ago, some hundreds and hundreds of years ago......and they are still standing. The houses in the USA are built terribly and do not even last without severe weather conditions. It is crazy.
Buildings can be built to withstand high winds, but water, water is the devil. Water has zero mercy and has a mind of it's own and cannot be controlled. The force of water is something fierce.
The NFI was, from what I understand, was created to relocate flood victims. But, instead, it is used to rebuild on the same spot, only to have those homes get flooded again. You are right, people need to move inland. And those who do not, need to pay their own HIGH flood insurance premiums because I am sick and tired of paying for the mistakes our government and the insurance industry makes at my expense.