They could cover a lot more if they didn’t need to make billions in profit. But your general concern is valid. What stops people from building in extremely high risk places. The answer should be federal building standards. If a house is built in a high risk area, it must have mitigating features that protect it from the high risk, or it can’t be built. Local building codes already do this sort of thing. So this is just an extension of something already done. Most people don’t know which areas are high risk for what. So don’t penalize them for getting duped. And in many cases the house wasn’t in a high risk area when built. So there needs to be funding to upgrade those houses to reduce the risk. That should come from the industries that profitted on ignoring the effects of thier industry in exchange for great profits.