Such as California and their wildfires, mudslides or earthquakes? What about Florida (and Gulf areas) and their hurricanes? How about Midwesterners and their tornados?

I don’t wish anyone to lose their house or belongings, but is having your house in the ‘prime location’ worth rebuilding every five years or so?

They rebuilt New Orleans, still below sea level. Those fires in California are just a regular thing, Florida’s Hurricane season is just an annual cycle. Should people living in places that get constantly hit by the same natural disaster be eligible for Federal assistance? Seems like a lost cause, building something over and over knowing that it will just be knocked down again.
I didn’t say can’t destroy. I’m talking about the places that are almost guaranteed to.