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I think most people living down there on the coast will tell you that losing their house is a risk of living there - it's not if but when.

Probably every one of them has said in the past "if it happens I'll just rebuild..."

Even then it's probably a pain when it does happen.

If it happened every 5 - 10 years no one would live there. But since the last big one was 25 years ago, people tend to forget and they do get to enjoy living on the coast for a while and it is worth it to them.

Look at Biloxi and hurricane Camille...
 
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