We have insurance on 5 homes in the Punta Gorda, Port Charlotte area, and I can tell you that getting insurance on any home in a Hurricane and Flood zone in Florida is a difficult proposition.
The insurance companies are reluctant to underwrite policies in this area, and only underwrite the value of the existing structure.
Since many of the homes were built in the 60's and 70's (crackbox houses by General Development Company), their value would be under $120,000.
That doesn't mean you can buy homes for $120,000 as the value of most of the homes in this area, especially the waterfront homes, is in the land under the home, not the structure.
So, it is not uncommon for a $350,000 home to only have $100,000 of insurance coverage. And unless that coverage includes wind and or hurricane damage, the insurance may not pay off.
But even if you do have insurance (wind/hurricane), it would usually pay far less than replacement costs - unless the home is relatively new.
Due to Florida's strict hurricane building codes, it will cost at least $180,000 to build a minimal house in this area (add $60,000 to meet Punta Gorda Isles codes).
So those people who do have insurance on older homes (and you'd be surprised at how many don't have insurance), will not get replacement value. They will get the value of the existing structure.
And in most cases, that will leave them well short of what it will cost to build a new home.
Of course with 1,000+ people now needing new homes built, you'll probably have to get on a waiting list.
PuntaGorda
I wouldn't worry too much. FEMA will be there soon passing out federal tax dollars regardless of whether you had insurance or not.
What really frustrated me when we lived in Dade (both pre and post Andrew) is that our decision to buy an house built in 1951 (built like a pillbox and rode out 120 mph winds without so much as a loose roof tile) wasn't worth squat in the insurance rates. Those who owned the truly dreadful sheetrock and plywood houses built 1970-85 paid the same as we did.