I would at least have full replacement value (should include tear down and haul away). That way, if it comes down to it, you won't be left hanging to pay those costs.

I hear you on earthquake insurance. For me, it is a must have--more so if you live on the valley floor (liquefaction). The Christchurch earthquake could be used as a lose comparative.

I just wish it weren't so darned expensive....

http://www.exploreutahscience.org/science-topics/science-and-society/item/126-earthquake-risk-in-the-salt-lake-valley