I list earthquake insurance at 150 / month3.

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   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 Appliances10) 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...  

If the scenario were changed and an earthquake caused the decoration to fall from the wall and break, it would likely be that the tenant is at fault for not adequately securing the decoration to the wall.

And make sure to account for the following expenses (if it applies):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   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 Appliances10) 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...  

Even northern California and southern California are similar on some stuff, and like another world on others.Southern California has earthquakes, and they worry about soil slippage and composition, etc., northern California in some parts has snow loads, wetlands, and in rural areas septic tanks!

Steve, not sure if this answers your question but there are a number of houses in mid-city Los Angeles where the chimneys have been converted to faux chimneys after earthquake damage.

Lines like flood and earthquake have low claims ratios, but the variance is very high, making them good consumer deals.Actually I think you're confusing claims ratios with expense allocations.

But we don't get hurricanes or earthquakes, just tornados and hail.  

One duplex in a nice area of North Miami for $100k that spits out a NOI of $29,000 a year, A second duplex in a rougher area of Miami (little Haiti) that cost us $50,000, spitting out a NOI of $33,000A third duplex in a rougher area of Miami (little Haiti) that cost us $140,000, spitting out a NOI of $33,000Everything else, we wholesaled to pay off the three properties.Rich

I also know how earthquake insurance works (or doesn't work, in reality) I don't know about tornados, hurricanes, monsoons, tsunamis or anything else!