Residents pay property taxes, local taxes, and state tax. Every town and city should have an emergency fund to cover emergencies as should the state. Of course that's not what happens to the money. One often wonders what exactly does happen to the money?
Flood water management and storage and possibly transporting across states can turn these events into an opportunity for flooded and drier states both. Not sure if government is willing to take up the initiative but if not local authorities with participation of public communities is best self defense because at the end of the day like said, its homeowners who are at highest risk of loss since government has a cap on assistance
State of Emergency activates FEMA. The areas most affected must meet the minimum amount of damage criteria. If not. No money. We had this happen in Central PA flood 2021. Our county didn't reach the minimum amount and therefore out of luck. More eastern counties qualified for FEMA funds.
