It’s becoming increasingly common to discourage reconstruction in disaster-prone areas such as barrier islands, flood plains, or wildfire-prone forests. The discouragement might come from local governments rezoning certain areas or new building codes that make reconstruction too expensive. The Federal government might withhold disaster relief if you’re rebuilding in an area they don’t approve of. Finally, insurers are increasingly refusing to cover properties that may need to be restored or rebuilt again in the near future.
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