One thing that I haven't seen mentioned yet is - would you WANT your property to survive a wildfire?
This depends on where you live, how isolated you are, etc. But if you live in a place like is burning in California right now, do you want your house to be one of the sole survivors in all the devastation? Your house survived. So no insurance payout for you. You are surrounded by what looks like a war zone. No infrastructure left supporting you. No stores to shop in. No neighbors. Impassable areas. An abandoned zone for all practical purposes. But there your house stands, with you living in it's stinking smoke stained environment. With no insurance money to consider moving somewhere else. Where there might be people and support.
Now if you already live in the middle of nowhere and don't have any real supporting infrastructure to start with, you may want to have your house survive. But you sill might be looking out at what was once a beautiful landscape that now looks like it was hit by a nuclear bomb. Your beautiful fishing creek is now a sludge filled mudslide. And you might have peripheral property damage that needs repair, but nobody can get in there with the equipment needed to fix it. Or there's nobody to do the fixing - because they all left when their houses burned down.
Sometimes, for some people, starting over in a new place after an insurance payout might be the more desirable option. This is our plan. We are prepped for this. In this case, that is called "financial prepping". I don't want to live in what looks like an apocalypse zone, all alone in the only house that survived, eating my squirreled away rice and beans. I do have those rice and beans squirreled away, but that's prepping for surviving a short term disaster at my current location. Once I am in need of a long term solution, that's where the financial prepping piece comes into play. There needs to be a balance in prepping IMHO. Not all financial, not all stockpiled supplies. You need both. In my case, the "wildfire burning down everything in sight" scenario is something I have decided to address with financial prepping.