My government, as part of a Hazard Mitigation Grant Program (HMGP), claimed they would reimburse us for the costs. It cost a lot, about $90K. But the thinking is that it wouldn't flood again and thus would potentially save the tax payers hard-earned money in the long run.
That was three years ago. We got reimbursed about half of the costs in May of 2009. We're still waiting for the rest.