How do you think the devastation from Sandy will affect our willingness to insure shore homes?

I’ve been looking at pictures of the devastation. In some areas, it seems like half the houses have been wiped away. These are homes that, if insured, are insured by a Federal program that I do not believe takes in enough premiums to cover the pay outs. I think that tax dollars make up the difference at times. I think that all the people of the nation are subsidizing the very few who are rich enough and lucky enough to own a shore home.

If this is true, do you think this is a wise policy? Should we encourage people to rebuild in places where storms can come along like this and wipe them all out? If so, should we have any requirements about how strongly they build? Should we be paying for their beach replenishment?

Or should we make them pay fully for rebuilding their houses if they can’t get private insurance? Should they pay for all the beach replenishment themselves with no subsidies of any kind?

Or should we not allow them to rebuild at all? It seems to me that some properties aren’t even there any more. Who should put the sand back if we allow it to go back? If their property is now underwater, should they be allowed to rebuild it?