I had numerous waterfront rental properties in FL from 1992 to 2004. Besides standard homeowners insurance for rental properties, they were also required to have flood *and* wind insurance.
In the 12 years, wind and flood insurance premiums went up almost an average of 20% a year, 40% in one year.
I had one situation where claims were filed. I recall the deductible was 33% of the total claim. Had I not done the repairs personally, the cost of hiring a contractor would have been cost-prohibitive.
I bailed for properties elsewhere.
I still keep tabs on similar properties in the area. I'm shocked at the sold prices, unbelievably high. I can only imagine what the insurance costs are now.
I can understand why regular insurance companies won't cover properties in flood zones, and I understand why building regulations require first floors being 11' above mean high tide, well above the 100-year flood height with the lower space being uninsurable.
I have less problem with a state-run insurance programs as long as the premiums reflect actual acuarial estimated costs, the program is run with secondary insurers, and Joe and Molly Six-Pack are in no way subsidizing the payouts or premiums.
You wanna live near the sea, Bubba? You're gonna have to pay up...