"Then they can rebuild it anyway they want. And get some insurance while they're at it."
You can't rebuild it anyway you want and expect to get "some insurance." It doesn't work that way.
Well maybe the insurance companies know something that the rest of them choose to ignore- namely you don't build below sea level in a hurricane prone area.
If insurance companies won't insure them the rest of us don't want to pay for their ignorance/stubborness.