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Some places had homes built there before they *became* vulnerable. But also:

"In the future, stopping development in the riskiest areas is ultimately part of the solution to rising insurance losses, experts say.

But for now, restricting development isn't popular with most politicians."

Because every new property brings in new property taxes.

https://www.npr.org/2023/07/22/1186540332/how-climate-change-could-cause-a-home-insurance-meltdown