I think this post started with earthquake insurance. Then people mixed up with all kind of insurance, such as fire, flood, etc. For rental properties, I always choose more comprehensive insurance policy and put an umbrella on top of it. Earthquake insurance, however, is an exception. reasons: 1. There don't have many insurers (as my understand, they all run by government). 2. deduction is big when it claims. Given these reasons I chose not to buy earthquake insurance for all my SFH properties in bay area I knew, this will have some risk. But I am willing to take it. The reasons I am taking the risk. 1. earthquake usually won't destroy a house completely. Usually it would create a crack, etc. 2. to hedge the risk, I purchase my SFHs in different area, not concentrate in one zip code (or even one city). Since I bought all my properties in 2009-2013 time frame when I had choice. Nowadays, I don't think I can do this anymore. So I stop buying:)