I am yet to hear someone robbed the school and took all logbooks, or all school logbooks consumed in fire, or...
Regardless, if any of above happens, it will be a new logbook with a statutory declaration, cross checked with both school and CASA records (providing they survived too)
At the end of the day, all flying is competency based, so number of hours is more about approximations, rather than exact numbers, eg. if you are applying for an airliner job, your sim performance will be more important than 1500 hours bashed in C172, etc..
But yeah, it feels better when the logbook is on a personal bookshelf, rather than elsewhere..