Flood is done by the government at set rates. So there is no reason to avoid building in a flood zone. Heck, you might be able to make a profit building in flood zones with this insurance.
It might be profitable to buy up property from people who are financially destitute and willing to sell at any price and then sell once everything is rebuilt, but that a long term investment. Also if you get multiple disasters at once (Florida was lucky to only be hit by 1 hurricane) you might wind up at the tail end of rebuilding like Puerto Rico and never be able to sell.
Seems minor?