I'll limit the scope of my reply to hurricane zones as wildfires and flooding are a bit different.
People in hurricane zones are used to evacuating and have plenty of advanced notice. For the vast majority of the time they're able to enjoy a healthy beach lifestyle - relaxing, great climate, fun hobbies. It's extremely rewarding to live near the beach. I'm sure there are studies that show positive impact to health and healthspan outcomes as well.
The problem is that America was for several generations living in a privileged bubble. The post-WWII period was very good for us. We could afford to build, rebuild, and rebuild again. Labor costs and material costs were low, and there wasn't overwhelming demand. This advantage lasted for a whopping 50 years as we transitioned from strength to strength, shifting from a manufacturing economy to a robust consumption and services economy.
Until recently, it didn't cost a million dollars to put a home near the beach. What's changed is the economic position of the country and the financial capability of the average American. We can't build houses for $60,000 anymore.
This is less a signal of "insurance getting smarter" and more of a signal the outsized advantages of America are coming (have already come) to an end.
If you want to constantly rebuild your house, be my guest, but you're going to have to pay a lot for the nice climate and beach property in that case.
the post war economy was an aberration when the rest of the world was recovering from being bombed to hell, it was never going to last forever. excesses like cheap rebuilding are just not as good of an idea of building to last in safe areas.
Florida shorelines used to be full of little fishing shacks and beach cottages. If hurricane winds tore it down or it floated away in a storm surge it wasn't the end of the world to replace it because costs were reasonable.
It's a totally different story now that the average beachside "home" is a $10 million dollar mansion.
Katrina runs counter to your point. Even Miami itself does without Katrina level disasters
Skipping past all of the other negatives about living in a known disaster prone area, we couldn’t afford to rebuild even back then without endless deficit spending. As I speak, New Orleans is still in the process of rebuilding post-Katrina decades later.
> This is less a signal of "insurance getting smarter" and more of a signal that American excess is coming to an end.
People in hurricane zones are used to evacuating and have plenty of advanced notice. For the vast majority of the time they're able to enjoy a healthy beach lifestyle - relaxing, great climate, fun hobbies. It's extremely rewarding to live near the beach. I'm sure there are studies that show positive impact to health and healthspan outcomes as well.
The problem is that America was for several generations living in a privileged bubble. The post-WWII period was very good for us. We could afford to build, rebuild, and rebuild again. Labor costs and material costs were low, and there wasn't overwhelming demand. This advantage lasted for a whopping 50 years as we transitioned from strength to strength, shifting from a manufacturing economy to a robust consumption and services economy.
Until recently, it didn't cost a million dollars to put a home near the beach. What's changed is the economic position of the country and the financial capability of the average American. We can't build houses for $60,000 anymore.
This is less a signal of "insurance getting smarter" and more of a signal the outsized advantages of America are coming (have already come) to an end.