Your analysis fails because real estate taxes benefit only local government, while disaster aid comes from federal taxpayers.<quoted text>
What if there is a break even point?
Say the tax revenues from the owners of prime real estate of coastal Florida or NC outer banks development yields a tiny return. Keep insuring them at a cost to everyone else?
What about New Orleans? From what I see, that city is doomed to submersion. The aftermath of Katrina was a prime time to relocate it a few miles to higher ground.
Low-lying areas of New Orleans should be abandoned to nature.