Also believe safety is a consideration as well. One thing we never understand is why people keep rebuilding in the same spots where they have lost multiple structures to flooding, erosion etc.? And the government seems to continue reimbursing them.
We have friends in Brooklyn who purchased a Town home there. The bank made them purchase flood insurance in order to obtain their mortgage. They tried to argue their way out of the requirement to purchase the insurance to no avail. Then the hurricane hit and the insurance company paid for almost all of their repairs and damage. They were fortunate.