Dichotomy
Banned
Maybe to an extent... but the area you live in does have a huge impact on your insurance rates. For example, years ago when I was driving and I moved from the 905 to downtown, my insurance rates on my car nearly doubled overnight simply because driving downtown is statistically more dangerous. The same applies to home insurance: rates are far higher for homes that are deemed likely to flood by virtue of being below sea level, near a levy, on a flood plain, in a hurricane-prone area, etc.
Beach Homes may be owned by people who can afford to rebuild, or afford drastically higher insurance rates. New Orleans doesn't really fit that demographic.
When my mother's condo was hit by a hurricane in '96 the building had to be refaced, all her furniture was ruined (she was on the 7th floor!), the swimming pool had been swept into the ocean, the dunes were gone, windows blown in, etc. Her remarks were interesting though: 'everyone's insurance in Florida goes up, but at least we got new furniture, rugs and curtains out of the deal.'
Even events like the WTC become our responsiblity. Insurance companies are multi-national now and everyone chips into share the liability.