So If I Quakeproof My House, I Don't Need Earthquake Insurance?
No amount of reinforcement makes a home truly "quakeproof." You can bolt your house to the ground for extra protection, but a strong quake could conceivably shake it off its foundation. That said, you have to weigh your risk against what you might lose and what you can afford.
For example, say you live in a high-risk zone. If you take all kinds of precautions to reduce your risk and you have no equity in your home, earthquake insurance may seem like overkill, especially if the deductible is around 10 to 15 percent of your home's value.
But if a big quake strikes, you still stand to lose quite a bit if you don't have coverage. No equity in your house may mean you can walk away from a home that's uninhabitable, but remember your credit will take a major hit. You may have a hard time getting another home loan for many years.
So if being a homeowner is important to you, the investment in insurance may be worthwhile.