You should have filed a complaint with your State's Insurance Commissioner's Office.Whether or not the insurance carrier complied with their obligations under the policy depends on the language contained therein. It seems odd that they would replace shingles of a non-conforming color on half the house. The idea is to restore the house to its pre-hurricane condition with the conforming color. This not to say that the insurance commissioner would have required otherwise, but at least you would have had the satisfaction of venting your anger...very refreshing at times. Unfortunately, many of the insurance commissioners come from an employment history with the insurance industry, and may be predisposed to doing things per the insurance industry's methods.  There probably would have been no cost involved in casting the dice and filing the complaint. Here in Connecticut there is none.

In so far as anyone not carrying flood insurance if they live in a flood plane is concerned...that is inconceivable. I do a lot of mortgage closings, and I can not think of any in which the mortgagee has not required that the mortgagor obtain flood insurance if the mortrgagee determines it is necessary. Otherwise the mortgagor could wind up in foreclosure.