Risk-based insurance premiums can encourage construction away from flood-prone areas by making expected losses visible. But rapid premium increases can also force out households that lack the resources to relocate or retrofit. Subsidizing every risky property indefinitely may hide danger, while removing all support can convert a risk signal into displacement. Effective policy must separate assistance to people from incentives attached to places—for example, funding relocation without permanently underpricing new construction in the same hazard zone.