If the earthquake was so big then coming up with the cash needed for the deductible would be at the bottom of my list. Instead I would try to find an alternative place to live for 6-12 months. If there was an insurance that covers living and mortgage expenses for an year, I would totally buy that.

If earthquake is powerful enough to cause this much damage aint nobody gona pay that

This seems silly -- a small earthquake can cause catastrophic damage to just one house if that one house is unlucky.

yeah, exactly my thinking. Insurers would just go bust.

That's when the government declares "A state of emergency", so that the insurance companies are baled out.