If you look in the FEMA site, they say that they provide gramts to perform repairs not covered by insurance. And no, they don't do a needs test. Now, the typical rich person does not let their insurance lapse just so that they can get a FEMA grant. Because such a grant is no sure thing. They also point out that SBA loans are the main source of assistance following a disaster. You get a break on interest, but you have to pay them back.
What you are observing is economics. As a city or town population grows, the best land becomes unavailable and those who arrive later or have less funds available must settle for less desirable land. Thus many cities have been extended using landfill which liquifies as the San Francisco Marina District did in the 1989 Loma Prieta earthquake, or floods. Risks may not be disclosed by developers, or may be discounted by authorities as the risks of global warming are today.
Efforts to protect people who might otherwise buy such land or to mitigate the risks are often labeled as government over-reach or nanny state.
Oh, of course they were caused by misguided engineering efforts. Everything from the Army Corps of Engineers to Smoky Bear goes under that heading. The most basic problem is the fact that we locate cities next to resources and transportation, which means water, without realizing where the 400-year flood plane is. Etc. We have learned something since then.
Our problem, today, is fixing these things. Which is blocked by folks who don't believe in anthropogenic climate change, or even cause and effect at all. They don't, for the most part, register Democratic.
The problem with your explanation is that it's fact-based, and stands on good science. This is the post-truth era. Thus, the counter to your argument will be:
The part I'm having a problem with is the little folks who won't get a second chance. What's reversible for the country may not be for them. Health care is that sort of issue.
Technological progress has merely provided us with more efficient means for going backwards. -- Aldous Huxley