QuakeSafe: Your Shield Against Earthquakes
Many people are unclear about what Earthquake Insurance is, whether they have it, need it, or what it covers. In British Columbia, the probability of experiencing an earthquake is higher. For this reason, all homeowners should seriously consider having earthquake insurance.
Check this seismic hazard map of BC from the Geological Survey of Canada.
What is Earthquake Insurance?
Earthquake Insurance is additional coverage you can purchase with your home insurance, condo insurance, or tenant insurance. It covers home repairs or replacement of personal property damaged in an earthquake. It also provides coverage if you cannot live in your home after an earthquake due to damage.
Who can purchase Earthquake Insurance?
You must already have home insurance, condo insurance, or tenant insurance to buy earthquake insurance. If you don’t have one of these policies, you can get earthquake insurance when you insure your home.
What does Earthquake Insurance cover?
Earthquake Insurance covers damage caused by the quake or shaking from the seismic event. It does not cover damage caused by secondary events like landslides, avalanches, tsunamis, or tidal waves.
If your policy covers a home, it includes damage to the building and replacement of your belongings. It also covers additional living expenses, up to the policy’s limit, if you must live elsewhere.
If your policy covers a condo, the strata corporation insures the building. You can ask them if they have earthquake insurance. If the building is damaged and your belongings are affected, only earthquake insurance can cover your loss. A standard condo policy will not cover it. As with homes, earthquake insurance also covers additional living expenses if you need to move out temporarily.
If you rent your home, earthquake insurance covers your property and any additional living expenses.
How much will it cost?
The cost of earthquake insurance depends on several factors. These include the policy amount, deductible, and your location. The cost ranges from as low as $50 per year to several hundred dollars.
Who should buy Earthquake Insurance?
Many homeowners assume the government will cover earthquake damage or that it’s included in their home insurance, but it isn’t.
According to government statistics, there is a 5-15% chance of an earthquake in Canada in the next 50 years. This coverage is worth considering because when the “big one” hits, you don’t want to face losing everything without financial protection.
Although you can prepare for an earthquake in other ways, buying earthquake insurance is the only way to protect yourself financially from earthquake damage.
Will my Insurance Company be able to pay out claims?
Every year, disasters like earthquakes, hurricanes, tornadoes, wildfires, and tsunamis affect millions of people. So how do insurance companies manage to pay all the claims?
Insurance companies buy catastrophe protection from reinsurance companies to spread the risk globally.
They are heavily regulated by provincial and federal governments.
Insurance companies must be members of the Property and Casualty Insurance Compensation Corporation. If a company fails, PACICC automatically handles all valid claims for its members.
