@ehBeth,
I've never had earthquake insurance and I've been through a zillion earthquakes, some significant, but we were not at the epicenter of those. California bungalows were pretty good in them, rolling with the rolls and jerking with the jerks. I did perk up the foundation of "beach cottage circa 1906" (what it said on the sales slip). Year estimates vary, but somewhere around there.
I've got views similar to yours, Beth, re people who live where Malibu Canyon Road lets out at the Pacific Ocean.. including a friend's property. I suspect that area will always be a fire outlet, depending on the plant growth in a given year. I've other issues than insurance, though, re ocean front access, including visual.
Also re saving houses as a prime fire fighting mode, my view varying depending on where they are sited.
I've a bias to living lightly on land, so I'd be fine with a few shacks.