I wouldn't say they have to move but rebuilding a frame house w/ shingle roof & regular plate glass windows in an area that gets 100mph+ winds on a regular basis should not be covered by insurance more than once. If they rebuild in the same area there should be additional requirements placed on the design. Different roof styles & materials are more susceptible to damage from high wind than others. Windows can be installed that are impact resistant or storm shutters installed. Relatively minor changes to the design of a house can significantly reduce the damage due to a storm. If I was building a house in hurricane regions, I'd start by looking into using poured concrete for a flat roof & the high wind walls with minimal windows with shutters on those sides.

Same thing in areas that get flooded often. The next one should be required to have the living area above the 100yr flood line. I don't care if it's by using posts or by locating on a high spot. Many of the homes on Sanibel Island in Florida are set up this way. The lower level is enclosed with some form of lattice for use in storing lawn equipment, etc.