What Does it Cover?
Earthquake insurance covers the loss or damage caused to the property and its contents caused by the shaking of the earth. If the shaking of the earth results in a fire (caused by a broken gas main), only the resulting loss or damage from the fire would likely be covered under an ordinary home insurance policy. In certain circumstances, homeowners who are unable to return home as a result of insurable damage may be entitled to additional living expenses.
What to Consider
Earthquakes, while not as frequent as other natural disasters, can cause tremendous damage to homes and other buildings. Unlike other natural disasters, such as hurricanes, earthquakes are not limited to specific seasons and give no warning. They can happen at almost any time.
Over the years, the costs of earthquakes have increased due to growing urban development near fault lines and the vulnerability of older structures which were not built or upgraded to current building codes.
Am I at Risk?
According to government studies, there is a 30% chance in the next 50 years that an earthquake strong enough to cause significant damage will strike southwestern British Columbia – including Victoria and Vancouver.
There is a 5 to 15% chance that a strong earthquake will strike in the next 50 years in the region from the St. Lawrence River Valley to the Ottawa Valley – including Quebec City, Montreal and Ottawa.
Earthquake coverage is especially worth considering if you live in an earthquake-prone region. The cost will depend on where your house is and how it was built. Your insurer may be able to advise you on what you can do to reduce the risk of earthquake damage to your home.