Techgrrl,
How about the federal and state gov't say that from here on out, if you build along the beach front and surge plain, no taxpayer money in any form will be used should your property become overwhelmed by the forces of nature. But any damage or debris from your property should a storm occur, you as property owner will be responsible for the clean up and and debris that leaves your property.
If the full burden then falls to private insurance and true market forces, the real costs may prevent much of the waterside development, building and construction we see along all the coastlines. Stop subsidizing and let all the risks fall on the owner and owners may think again about where and when they build stuff.