Do Canadians need Earthquake Insurance?
According to the Earthquake Model for Canada, a report produced by AIR Worldwide for the Insurance Bureau of Canada, the risk of a major earthquake is considered the highest in Vancouver, Victoria, Montréal, Ottawa and Québec City.
In fact, after Vancouver, Montreal is considered the city with the highest earthquake risk in Canada based on its location in a moderate seismic zone!
Standard Insurance: What is covered?
Earthquakes of magnitude 5 or greater can cause severe damage, so it’s important to properly understand what coverage your home insurance contract entitles you to.
- Homeowners and renters insurance does not cover earthquake damage.
- However, losses from fire and smoke following a quake and, if such a fire makes your home unlivable, the additional living expenses incurred while you live elsewhere during repairs are all covered.
There are many steps you can take to prepare for an earthquake. That said, the only way to financially protect your family and home against earthquake damage is to buy earthquake insurance. Earthquakes and their direct consequences are not covered by a standard homeowner’s insurance policy, unless sufficient specific coverage is added to it.
What does Earthquake Insurance cover?
- Earthquake insurance covers loss or damage caused by the tremor or shaking from an earthquake.
- If you own a house, your earthquake insurance will typically cover loss or damage to your building and your personal property. It can also cover any additional living expenses you incur if you’re unable to live in your home while it’s being repaired.
- If an earthquake breaks a gas main and starts a fire, the resulting fire damage would likely be covered under a standard home insurance policy. Your coverage will depend on the legislation in your province or territory.
- If you own a condo, your condo (or strata) corporation is responsible to insure the building. But to cover your personal property and additional living expenses, your individual condo policy must include earthquake insurance. It may also cover assessments made against you because of a shortfall in your condo corporation’s insurance.
- And if you rent your home, earthquake insurance on your tenant policy will typically cover your personal property and additional living expenses.
- In certain circumstances, homeowners who are unable to return to their home as a result of insurable damage are entitled to additional living expenses.
- Earthquake coverage is available for your place of business. To mitigate losses to your business in the event of an earthquake, you can purchase business interruption insurance.
Contact us to discuss your specific needs, as always, We’ve Got Your Back!