The 15% deductible on a $300,000 home works out to $45,000, not $15,000.

Granted, that's a lot of money, but, as I've said before, without the insurance what is your Plan B if the earthquake destroys your house -- knocks it off its foundation or whatever?

I suppose I would base my decision on how much equity I had in the house, how far down I had paid on the mortgage. If I hadn't paid off that much of the mortgage, I'd probably forgo the insurance. Then if the house were substantially damaged, I would have the option of getting a huge loan to fix it up or walk away from the house altogether.

And what if the damage total cam to about $50,000? You would have had to come up with that initial $45,000 anyway, plus another $5,000. That $5,000 represents about 5 years' worth of annual premiums that you saved by not buying the insurance.

On the other hand, if I had paid down a substantial sum on the house (like my house here in Las Vegas which is about 80% paid for), I wouldn't consider being without insurance. I can't afford to start over again.

Barbara