Please consult your professional insurance broker for further information. Damage caused by an earthquake isn’t covered by a standard homeowners, renters or condo insurance policy. It is optional coverage in all property insurance policies. A large strata building can be easily valued at $20,000,000; a total loss with a 10% deductible would result in a $2,000,000 earthquake deductible to pay. "Every time there's a bit of a rumble, we do see more uptake, if you will, from the public in terms of looking at earthquake insurance," said Lindsay Olson, of the Insurance Bureau of Canada. rates are low. Earthquake insurance provides coverage for loss of or damage to personal property and buildings. Keep in mind that your deductible payment will also be much higher in the event of an earthquake claim. Earthquake insurance provides coverage for loss of or damage to personal property and buildings. More likely than you may think. For example, the standard earthquake deductible on your business or house insurance policy may be 5%. While 70 per cent of Vancouver Island homeowners have purchased earthquake insurance, the provincial average is 45 per cent. Check your auto insurance policy to find out if it covers that damage. homeowners assume that earthquake coverage is included in their house inaurance, or that governments will compensate them for damage, but neither is the case, For most B.C. How Does Earthquake Insurance Work? Is earthquake insurance important to condominium owners and apartment tenants, as well as homeowners? government study in 2002 showed that 65 per cent of British Columbians in high-risk areas have quake insurance. A 2013 study commissioned by the Insurance Bureau of Canada (IBC) found that in two of Canada’s earthquake “hot spots” — in British Columbia, off the west coast of Vancouver, and in Quebec, starting beneath the St. Lawrence River — 55% (B.C) and 96% (Quebec) had no earthquake insurance. Earthquake insurance does not cover damage to your vehicles. Best for High-Value Homes: PURE Insurance. Less than half of Metro Vancouver residents have earthquake insurance. Now there is a way to prevent an Earthquake from destroying your finances with Earthquake Deductible Buy-Down Insurance. That’s about twice the … Audience Relations, CBC P.O. According to the Geological Survey of Canada, there is approximately a 10% chance that a massive earthquake will occur off the coast of BC or in Vancouver in the next 50 years. A California house insured for the same amount would have an annual premium of $865. Earthquake insurance costs drop toward Maple Ridge, Abbotsford, Chilliwack and into the Interior. Print. If you have any questions about earthquake insurance for your home or business in British Columbia, or you would like a quote, please contact us: Copyright 2011 © Habitat Insurance Agencies Ltd.   All rights reserved. Many B.C. You could opt instead for a 10% deductible. It is always worth getting a quote so you can make an informed decision. That could include earthquake insurance. You can purchase Earthquake Insurance in BC at any time during your existing insurance policy term. Condo policy limits can vary substantially for insurance deductible coverage. Those who don’t buy the extra coverage often don’t bother because they assume their fellow taxpayers will pick up the tab, according to Jason Vander Zalm, of Square One Insurance. In its simplest form, Earthquake insurance in Canada covers the loss or damage caused to the property and its contents caused by the shaking of the earth. If there is not enough money in the strata’s reserve fund, the remainder of the deductible to be paid will be divided between all of the condo owners. In lower-risk areas, the cost of earthquake insurance is lower, so you won't be paying the kinds of premiums people pay in high-risk areas. Many homeowners who aren’t sure if they are insured are reminded to ask about it when events occur like Saturday night’s 7.7-magnitude quake centred near Haida Gwaii. Tuesday's earthquake has many people thinking about making preparations for a large quake that could hit B.C. Important COVID-19 Notice: Our office is open for business – For more information about our COVID-19 protocols please learn more. Coverage for Earthquake may be unavailable for a pre-determined period following an Earthquake, which can be extended if aftershocks occur; therefore, it is best to purchase before an Earthquake occurs to ensure coverage. Residents in B.C. Disclaimer:  This article is designed to provide information for personal use only. Your house insurance or business policy may state $500 to $2,500 deductible for specific perils such as water damage. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. Share on Facebook. The answer to whether earthquake insurance is worth it depends on several different factors, including your financial situation (what you can afford), how earthquake-prone the area you live in is, and the value of your property, house, and belongings. Like other insurance policies, earthquake insurance plans have deductibles and annual premiums. Ridgecrest homeowners were fortunate in another way. "They believe that the government will step in if there’s a major catastrophe and the government is going to somehow magically compensate the public if something happens to their homes," Vander Zalm told CBC News Monday. They keep saying – it’s only a matter of time until the ‘big one hits‘ on the West Coast of BC. Depending on the policy, providers may have varying … A: Earthquake Insurance is critical if you own your home outright or have a lot of equity. It’s a lot of money for something that happens as rarely as a major earthquake or volcanic eruption Homeowners insurance typically does not cover damage caused by certain natural disasters, but an earthquake policy could provide some financial protection if your home and property are damaged by an earthquake. According to the Insurance Bureau of Canada, there is a 30% chance that the big one will hit somewhere in Canada within the next 50 years, most likely along the west coast. To figure out if an earthquake insurance policy is worth it for you, start by establishing the potential risk of where you live. It does not cover loss or damage caused by landslides, snowslides or other forms of earth movement; Nor does it cover loss or damage caused by tsunamis or tidal waves, even if the tsunami or tidal wave was caused by an earthquake. Contact your nearest Westland Insurance office for a quote, or call 1-800-899-3093. "They reflect things like soil condition, what the structure is actually constructed of, whether it's wood-frame or whether it's brick, and it also reflects the value of the building itself," Olson said. Some argue the high price of deductibles and premiums make earthquake insurance costly – and therefore not worth the money. In high-risk cities like San Francisco, where home prices are well above the national average, earthquake insurance premiums can range from $2,000 to $5,000 annually. Know that earthquake insurance doesn’t come with a standard flat rate deductible. An earthquake can wreak havoc on your home. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. If you’re unable to afford the higher premiums that come with earthquake insurance, it’s probably not something you should or can get. Earthquake damage is generally not covered in the typical homeowner's policy so if you live in an area prone to earthquakes, you may want to check into obtaining coverage. Insurance deductibles are always higher for losses due to earthquake. "The reality is, because it is an insurable event, it’s quite clear the government will not be stepping in.". According to Natural Resources … To ensure your valuable assets are adequately protected, Reliance Insurance highly recommends adding an earthquake endorsement which will provide coverage for your home, personal belongings and your outbuildings. When earthquake insurance isn’t worth it. So if your home is worth $300,000, your deductible would be $60,000. This type of earthquake could easily cause billions of dollars of damage to buildings and infrastructure. $515 in Richmond, BC . And with good reason. Earthquake insurance provides coverage for your home in the event that an earthquake causes damage to it. Earthquake insurance on a wood frame home built in Napa after 1990 with an insured dwelling value of $400,000 would cost $1,191 in premiums per … If you have a $300,000 house, expect to be out of pocket between $6,000-$60,000. You will pay lower rates elsewhere. house insured for $300,000 would have an annual earthquake premium ranging from $225 to $485. There is sometimes some ambiguity about requirements and policy so we wanted to drop a few important pieces of info on you about earthquake insurance. Ask your insurance broker if these options are available. 's south coast. Saturday night’s 7.7-magnitude quake centred near Haida Gwaii. Those areas include locations on Vancouver Island, Richmond and Delta. The cost will depend on where your house is and how it was built. If an earthquake damages your home and you don’t have earthquake insurance, you’ll most likely end up paying out of pocket to make any necessary repairs. Earthquake insurance: 8 things you need to know. Habitat Insurance Agencies Ltd is not responsible for any legal disputes of this matter. According to BC Disaster Financial Assistance, “Insurable damages in the private sector from wildfires, earthquakes, snow load, wind storms, sewer or sump pit back-up, water entry from above ground (including roofs, windows or other areas of … Earthquake insurance does not cover water damage from outside your home, such as sewer or drain back-up, flood, or tsunami. About 20% have earthquake insurance, according to the earthquake authority’s estimates. Share on LinkedIn. It is ideal to purchase it at renewal, but it can also easily be added mid-term. Ask yourself the question: “Could I easily recover – without financial assistance – if my home or business were destroyed by an earthquake?” If the answer is no, you should seriously consider buying earthquake insurance. Vander Zalm said that another reason people don’t bother is the extra cost. (The building should have its own separate strata policy with earthquake coverage.) Box 500 Station A Toronto, ON Canada, M5W 1E6. Closer to home, many British Columbians have paused to consider the potential damage an earthquake could cause in the region. The average premiums for earthquake insurance range between $800 and $2,000 annually with deductibles between 10 percent and 20 percent of the total policy cost. Earthquake insurance covers loss and damage to both your home and possessions due to an earthquake (shaking of the earth), in addition to out-of-pocket living expenses following an earthquake. Earthquake coverage is something Canadians living in any type of a home might want to consider. "On average, here in B.C., it accounts for between five and 50 per cent of people's homeowner insurance premiums, obviously depending on whether you are in a really earthquake-prone area," he said. house insured for $300,000 would have an annual earthquake premium ranging from $225 to $485. Compared to California — where quakes are far more frequent — B.C. Many B.C. To illustrate the point more clearly, imagine this scenario:  your building is damaged/destroyed by an earthquake. You may also choose to add earthquake coverage to your condo policy. A B.C. A B.C. The only exception is damage caused by a tsunami. Consider a lower personal property limit: If you are home owner, some insurance companies will insure the full replacement cost of the building and offer different personal property limits. Flood. Owners of strata units should discuss Earthquake Loss Assessment coverage with their broker as they could be responsible for paying a portion of the strata’s earthquake deductible. Quotes are always free… and fast, friendly ser­vice is a guar­an­tee. How Likely Is an Earthquake in Canada? Is earthquake insurance worth it? Earthquake premium rates are on the rise:  during the last 12 months, we have noted that many insurance companies have increased their premium rates and, with large losses such as those in New Zealand and Japan, this is a trend likely to continue. Earthquake insurance will usually cover all damage caused by an earthquake. homeowners assume that earthquake coverage is included in their house insurance, or that governments will compensate them for damage, but neither is the case. PURE Insurance, in business since 2007, is best known for insuring high-value homes and vehicles, as well as providing umbrella policies for high-net-worth individuals. If you don’t have earthquake coverage, your policy will likely pay no part of the earthquake deductible. To maintain earthquake insurance of property and possessions we were looking at a 10% increase in our annual rate. If you have a condo owner’s policy with earthquake coverage, your insurance company will pay your portion of the deductible, up to the indicated policy limit. The condo owners will be responsible for paying the building earthquake insurance deductible. Check with your broker about this important point. But that is not the case. and the Ottawa-Montreal-Quebec corridor believe a devastating earthquake is a long way off and wouldn’t happen for at least 50 years, according to an IBC poll conducted in 2013 by Pollara Strategic Insights. homeowners, earthquake insurance coverage is an pricey extra. PURE writes 46% of the earthquake insurance policies in California through the CEA. add earthquake coverage to your condo policy, earthquake deductible on your business or house insurance, Small Business Insurance BC: FAQ from business owners in Vancouver. A lot of mortgage lenders may even require that you have earthquake coverage as part of your house insurance policy. The price is based on information from the Geological Survey of Canada combined with characteristics of individual properties. rates are low. Tenants insurance: just a few questions away! If this natural disaster were to occur where you live, earthquake coverage would help you protect your family’s cherished belongings and your home. According to the Insurance Information Institute, this … At Habitat Insurance, we believe that the main objective of insurance is to protect you from a devastating loss. Deductible: Ask for a higher earthquake deductible on your insurance policy. Earthquake insurance might not seem worth it for a few reasons: It’s pretty limited — it only covers earthquakes and volcanoes and very little proximate damage related to those disasters. A B.C. The earthquake insurance deductible for homeowners typically has been either five or 10 per cent, but that is expected to increase to 10 or 15 per cent. Share on Twitter.