Many governments provide financial assistance for reconstruction of damaged housing units after a  disaster in order to prevent vulnerable households from falling into poverty traps or entering low growth cycles. To lessen these risks and the overall financial burden on the public sector after extreme events, private insurance schemes provide one viable solution. In this paper, the possible effects of such solutions are assessed for District 1 of Shiraz, Iran, based on recent probabilistic earthquake risk modelling. The work explicitly focuses on the financial vulnerability of different household groups as  well as possible increases in premiums due to uncertainties in the underlying risk model through the  use of loading factors. The results are compared with current non-probabilistic-based premiums that  are used by most insurance companies in Iran, and recommendations are given as to which schemes  may fit best or could be affordable for society to manage future earthquake risks.