If I call my insurance and say my roof has hail damage, I think I'd get a major stink eye.Not to say it can't happen here, but in 30+ years I have seen nothing bigger than frozen peas.We carry earthquake insurance though.

And IMHO, currently in Austin you can't cash flow on a long-term SFH rental without putting 30-40% down payment (or finding properties well under FMV, that even after rehab will still be 20% under ARV, plus what you have to leave as DP for the mortgage, again an effective 30-40% DP - and if you are not able to find them and BRRRR, and have to pay that 30-40%, your cash on cash ROI will be under 2% similar with just leaving the money risk free in a saving account).Here is what I account as expenses for a correct calculation of cash flow:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance   a) Property Hazard Insurance (0.3-0.45%)   b) Flood Insurance   c) Earthquake Insurance   d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy)   a) Water § Sewer § Garbage   b) Electricity   c) Natural Gas   d) Propane9) General Maintenance (usually 5%)   a) Upkeep § Landscaping   b) Snow removal   c) Repairs   d) New Appliances   e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...  

Furthermore, while we initially accommodated the guest's request to change the reservation from December 31st - January 5th to January 2nd - January 7th, they subsequently canceled their arrival on January 2nd on January 5th and requested another modification due to a flight cancellation caused by the earthquake in Japan.

Met Life/Farmers won't insure unless you insure your primary residence with them and they refused to insure our primary residence due to earthquake risk.  

I too am thinking about investing elsewhere other than my city beam cause if the earthquakes, u guess u have to do ur due diligence on a larger scale and as a 1st investment u have to look at the bigger picture coz u don't want to do a half job, get into skins bother and give up the game.Make things as easy as possible coz I find it's a lot to take in and u want ur first experience to get the wheels turning in the right direction!

Or, a charging order may be granted.If you're going the umbrella insurance route, perhaps see if it will cover you for several things including just the routine slip and fall (like mold or earthquake).

I am not in a flood zone but earthquakes have been known in my area so I have EQ insurance on all my properties.

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

1) You'll want to make you understand the liability coverages, especially mold, earthquakes and flooding exceptions.2) You'll want to be personally added as "additionally insured" on these policies, so you are personally covered - although most policies do this anyways.Find a good insurance broker and go over all of this with them!

Couple that with the fact that wildfires and earthquakes are becoming more frequent and the fact that the cost of housing has not responded at all to all of those issues and you can see why so many are eager to leave.