[safsafsa]

Insurance doesn't work that way. Insurance works by the insurer selling a bet that an event wont happen so that the buyer is covered if it does.

The insured doesn't mind paying for a (negative expected value) policy because the peace of mind is worth much more than the premium.

The insurer doesn't mind because they're making many bets across many flood plains.

The insurer is basically making money by charging a small premium to coordinate and ensure different people help each other out when they get unlucky.

As soon as flooding is guaranteed, there is no point of insurance since the premium is equal to the coverage provided.