> people can react accordingly to either reduce or avoid the problem.

Yes, but lots of people won't be consider all factors when buying a house.

Prices are high, houses aren't on the market long, when you do find a house that matches your criteria, are you going to consider if it's safe from floods, fires, earth quakes, etc?

You're already factoring in schools, distance to work, shopping options, etc.

Not to mention the fact that you're mostly worried about whether the house has mold, termites, pest, or construction deflects, how long time to the roofing need to be replaced.

Asking normal people to factor in natural disaster probabilities is difficult.

Maybe, it's better to not allow construction is such places through zoning.

I bet most home buyers spend more time looking for pests, mold, leaky pipes, etc, than they do investigating wild fire risks.