I'm OK with them being allowed to build in such a risky place like that, as long as the rest of us don't have to pay the tab for their losses when their property gets wiped out every decade.  If an insurance company wants to insure them, fine, but their rates ought to be reflect that high risk (like be 10x the normal rates or something).

I'm not talking about most of Florida, or Houston, or other places where it really does take a 100-year storm to do the type of damage they sustained (although their rates should probably be somewhat higher too).  I'm talking somewhere like the Keys where the risk is dramatically higher, and far more frequent.  

If you choose to build/buy somewhere that's uber risky, then be prepared to pay for most of that risk yourself.