As I said to another poster, of all the people moving to Florida, a sizeable percentage want to live as close to the ocean as their finances allow, often times their house is built on land that at one time was a swamp, it’s only natural when a hurricane comes thru the house gets destroyed.
I could see some type of hybrid insurance market emerging, the closer you live to the ocean the higher price you pay and the amount of coverage you can get gets reduced.
Those living on the oceanfront get no insurance for hurricane caused damage because they are likely self-insured, as you move inland and in the center of the state where your risk is significantly lower, you can get more insurance at a lesser cost, etc.
Right now, people living in the center of Florida who have very little risk of hurricane damage are subsidizing those homeowners who choose to live on or near the ocean and have a much higher risk of hurricane damage.
I could see a future where if you live within a mile of the ocean, you can’t get insurance unless you pay a fortune and even then, it might not happen, compared to those living inland who can get insurance at a reasonable price.
Well, is some respects your plan does make sense, but that would freeze out some owners and restrict that area to the “elite”. The little guy/gal that services those communities as clerks, shoe salepeople, dental assitants, etc—would be forced to move further inland out of EV range.