As Bill Engvall said "here's your sign." It's expensive to live in disaster-prone areas. Whether the disasters are due to hurricanes, tornadoes, wildfires, or earthquakes. You are statistically more likely to make a claim, and therefore your premium must reflect that reality.

The rising premiums serve as a brake for continued development in such areas. Not only should it drive the build-out of fewer units, it should also drive the build-out of cheaper units. Building multimillion-dollar homes in disaster-prone areas should be extremely expensive to insure.