If you reside in an area prone to earthquakes, have equity in your home, and you couldn’t afford to rebuild it on your own, buying earthquake insurancemakes financial sense.  If you can afford it, the best way to protect the investment in your home is to retrofit your home and buy earthquake insurance. The more steps you take to retrofit and improve your home’s ability to resist the impact of an earthquake, the less likely you are to face expensive repairs.  Retrofitting your home includes, bracing your water heater, installing “sheer” panels and bolting your foundation. If you decide that your home needs protection beyond retrofitting, then shopping for earthquake insurance is your next step.