Not to mention that whole earthquake thing.

But when it's all over, you have to surrender your property.https://en.wikipedia.org/wiki/Eminent_domain_in_the_United_StatesThe examples I cited my be less violent than Molotiv cocktails (or major storms, earthquakes, or volcanoes), but they still have the potential to disrupt one's life in a major way.

For those who own homes or rentals in California, do you buy earthquake insurance?

That's insured at rebuild cost, low deductible and also includes earthquake coverage.

If you have all of your properties in one market, then you are subject to any downturns in the local market that range from a simple loss of employer to major natural disasters such as earthquakes or hurricanes.Diversification is a conservative approach, but if you have everything in one market and disaster strikes, then it can be a problem.I am in Memphis and believe it or not this is an earthquake zone.

If he was looking at investing in Haiti for example, there would be huge political risks, problems finding property managers, as well as a language issue.

So my insurance agent has quoted $450 annual for earthquake insurance.  

Unless there was a disaster and they had to do an inspection to see if your condo wasn't flooded or an earthquake didn't damage it, there's no need for a $175 disaster fee. 

You rented it out, and then in future the home gets destroyed by earthquake?  

Tornadoes in Kansas, earthquakes in California, hurricanes in the South, and heavy snow in the North.