The New York Times recently did an article on the topic: https://www.nytimes.com/interactive/2018/04/17/us/san-franci...

The short answer is that while a natural disaster is possible, the time frame between disastrous earthquakes is long enough for people to get by anyway. Builders do have a legal standard to follow, but whether that standard is safe enough is another question entirely.

Re insurance, many employers offer benefits packages that include basic life insurance coverage for employees, which would likely offer some compensation. YMMV.