Some of the potential risks are natural disasters (earthquakes obviously, and a few other fun ones), as well as the overall economic outlook for areas outside of Tokyo, and the aging population in the countryside.As always, detailed local knowledge, or a trusted partner on the ground, is key.

You'd have to do a major rehab/reposition + earthquake retrofit on theses older properties, so you'd better have deep pockets and the ability to lose money in the short term until you can ratchet up rents to make up for your large capex and high maintenance expenses.

Builders risk also covers earthquake, waterbackup and equipment breakdown.  

The big Earthquake supposedly (experts say) we are just waiting for the big one in California, if you lived there would you cover your risk with earthquake insurance?

This part of the San-Francisco Bay Area also sits atop the earthquake-prone San Andreas Fault.

Forgot to mention that if you are in a fault zone, they'll most likely want to see an earthquake shut off valve at the gas meter.

Hey I wonder if I could get a work visa and have them shipped in from Haiti?

There are earthquakes, fires, and mudslides out west.

Tangentially, I'm actually kind of surprised that the scientific consensus that magnitude 8 or 9 earthquake is definitely coming for Portland and Seattle in the next 50 years hasn't slowed down development sales, even though many of the beautiful old houses in Portland aren't even eligible for earthquake insurance.

A Force Majeure event is hereby defined as the failure to carry out any of the terms of this Agreement due to any one of the following circumstances beyond the control of Contractor: (a) the operation and effect of rules, regulations, or orders promulgated by any commission, county, municipality, or governmental agency of the State of XXXX or the United States, (b) a restraining order, injunction, or similar decree of any court of competent jurisdiction, (c) war, (d) flood, (e) earthquake, (f) fire, (g) severe wind storm, (h) acts of public disturbance, (i) quarantine restrictions, (j) epidemics, (k) strikes, (l) freight embargoes, or (m) sabotage.