Yeah: common risks across a neighbourhood will usually lead to severe problems trying to claim your cover. And subsequent property resale issues: if insurance is unavailable, a mortgage is unavailable; if a home can't get a mortgage then you can only sell for cash at extreme discounts.

Avoid risky areas unless you can afford to lose your home.

Lots of people in Australia got caught out during floods, in part due to unobvious exclusions. https://mdlaw.com.au/news-insights/flood-insurance-australia...

In my city Christchurch, an earthquake led to problems for many many people.