I don't live there but I do have family and friends there and we have a timeshare that got hit by both storms (Treasure Island). I'm in a lot of local facebook groups to keep up on stuff in the area. Whether it's legitimate or not, the concern among people is real about your property being in jeopardy if it's beyond 50 percent damaged. Two days after the hurricane the treasure Island building department was going around giving letters to everybody threatening fines if they didn't get demolition permits. Let's just say the populace was pretty pissed off when the building department comes by to run salt in your wounds as you're trashing out your home wondering what you're even going to do next while you have no home, water, or electricity.
Its pretty clear they're trying to build as big a record of damage values as they can. That's how I learned about that FEMA thing in the first place. So ya, if I lived there and had extensive damage I sure as hell want my leadership to tell me they've got my back in case that may happen.
Our place and those of of friends and family are all fine and not in any danger of this happening, so I can say as an unbiased observer that people whose homes are in shambles are genuinely worried about that, and I'm glad someone is supporting them.