I don't think you're dumb. I assume you love where you live, and you're aware of the risks. I assume you get more utility out of living someplace amazing than the risk of losing it all costs you!

My family has a second home that is in a similar situation, if that area gets hit w/a storm, it is gone, maybe the indent from the crawl space will be left, but it is super nice to be close the beach! Ha.