Uh, actually, they could be...Or in the case of a 'disaster', what would happen? The owners would just be 'out' because their specific unit was destroyed? Its not how it works.
In other words, if building X got leveled in a hurricane, the replacement building X would be those owner's deeded spot. The only difference in the kind of situation where the timeshare operator was willingly replacing/changing buildings would be that the replacement building would probably have to be available before the closed/changed the old building.
"Chateau Charmant
https://www.redweek.com/resort/P991-chateau-charmant/reviews
Gulfport, Mississippi
We are sorry to report that Chateau Charmant was completely destroyed by Hurricane Katrina in 2005. According to the resort's Website, this resort will not be rebuilt (Dead link -- http://www.chateaucharmant.com/index.htm)."The land sat fallow until 2014, when it was auctioned off. I don't know how owners were reimbursed -- if they were. I don't know how many held separate insurance policies on their timeshares.