Taxpayers should not subsidise flood insurance. Their current insurance should pay them, but they should move out of the flood zone.
IMO there is no area that could be considered 100% free from the damage of rising water. Was in the 100 year flood several years ago in Houston and now live in a hurricane prone area. My choice about where I live and I don’t mind paying for my own insurance for both water and wind. What I do mind paying for is an increase to my insurance because of damages which occur in other parts of the state. Their problem.
Warehouses or industrial areas building in a flood zone? Maybe. Residences? No unless the owner is willing to foot the total bill for the damage. Certainly in our area you could elevate all the houses but that does not protect you from wind and damage from wind driven rain.