An article from The New York Times dated 1981 :
Congress last summer reauthorized the flood-insurance program for fiscal 1982 but expressed concern over the mounting cost of coastal insurance and called for recommendations to reduce these outlays. Simply abolishing the coastal portion of the program would not solve the problem. Structures would continue to be built in hazardous coastal locations, and the clamor for public assistance after the next hurricane would be as irresistible as ever. Instead, Congress should amend its flood-insurance program to take account of the unique hurricane problems along the Atlantic and Gulf of Mexico coasts.
Some of the program’s worst failings were self-infli cted. Federal officials were slow to crack down on communit ies abusing the subsidies in pursuit of the jobs and economic benefits accompanying seashore development. Florida has a property- setback law intended to keep development a safe distance from particu larly dangerous shoreline sites. Of the 1,057 requests for variances from this law between 1972 and 1979, state officials granted all but seven.
continue reading, Flood Insurance
The issues with the flood insurance program go back over thirty years –