The experience in Florida & Louisiana is that usually, many insurers walk out of markets after mass disaster. The remaining ones tend to jack up the rates multiple folds and the State has less control since having insurers is the main priority. Past premiums will be used to pay present claims; but the premiums have to readjust in light of increased risks. Billion $ loss today means the insurers should be ready with $3B reserves for the next disaster. A $1000 increase in premium is equivalent to a hidden price rise of, say 3%, (assuming annual mortgage payment of $30,000). That should reduce affordability/demand by 3% if you assume a 1:1 price elasticity.
