The question is if the citizens of the USA are ok having ma and pa American subsidizing and being liable for high risk properties, when lower risk properties are available to the people purchasing high risk properties?
The country is at unsustainable debt, deficit, liability, and entitlement levels in part because we want someone else to pay directly or indirectly for our lifestyles.
Where do you draw the line? The entire state of Florida would be off limits, most of the east coast. Texas gets a lot of hurricanes as does the midwest. California has earthquakes and tornados. Even Phoenix had major flooding a few years ago.