I was not commenting on the ethics or economics of offering, purchasing, or utilizing federal flood insurance. Someone said you can't get tsunami insurance, which was patently false. Private flood insurance isn't typically offered simply because people who live in high flood risk areas are at a high risk of having to file a claim. Same with people who build on the side of a volcano that's been erupting nearly continuously since the 1980's -- an eventual claim for lava damage would not be surprising. If there were a viable insurance market for such people/places, it would have been tapped.

Don't fool yourself, there will be State and Federal dollars put forth to subsidize losses from this eruption.

So the GoFundMe implies she will be trying to pay the mortgage on the now destroyed home. I would think that unless you had substantial assets, you would just stop paying the mortgage and make that the bank's loss...who were equally culpable in funding a home that is not insurable for a foreseeable event. Says she "lost her husband" 2 years ago, so possibly there is a substantial life insurance payout in a bank somewhere that makes it hard to walk away from the mortgage.