Why do people settle in areas that have natural hazards?

they have strong familial ties there.
they like the climate.
they are ignorant of the risks.
they are able to earn a living there.

They usually can earn a living there.  Take California, for example, their GDP is about 2 trillion dollars!  Even though, the risks of living there are very dangerous, people care about money. Although, there might be some people who are ignorant of the risks.

Answer the collision of tectonic plates;