Do You Need Earthquake Insurance in British Columbia?
If you own or rent a home in British Columbia, your standard home insurance shouldn’t automatically be assumed to cover damage caused by:
earthquake shaking.
The Province of British Columbia says earthquake coverage is usually optional, while the Insurance Bureau of Canada (IBC) says damage caused by earthquake shaking isn’t included in a standard home insurance policy but can be purchased as optional coverage.
That distinction matters because an earthquake could damage:
Your home’s structure
Personal belongings
Interior improvements
and potentially leave your home:
temporarily uninhabitable.
Earthquake insurance is designed to transfer some of that financial risk to an insurer, subject to:
Coverage limits
Deductibles
Exclusions
and:
Policy conditions.
Why Earthquake Insurance Matters in BC
Earthquake insurance isn’t simply another small add-on to consider.
For many households, their home represents:
their largest financial asset.
Imagine a homeowner with a property that would cost:
$900,000
to rebuild.
A severe earthquake causes major structural damage.
The homeowner discovers afterward that their regular home policy:
doesn’t include earthquake shaking coverage.
The financial consequences could be enormous.
This is why earthquake coverage should be evaluated based on:
the size of the loss you couldn’t comfortably absorb yourself.
Is Earthquake Damage Covered by Standard Home Insurance in BC?
Generally:
Not earthquake shaking itself.
IBC identifies earthquakes and other earth movement among perils generally excluded from standard home insurance, while earthquake damage coverage may be purchased separately.
So having:
comprehensive home insurance
doesn’t necessarily mean you have:
earthquake insurance.
Check your declarations page and endorsements for explicit earthquake coverage.
What Does Earthquake Insurance Cover?
Coverage varies by insurer and policy, but optional earthquake insurance can potentially protect against earthquake-related loss or damage to:
Your Building
For homeowners, this can include insured portions of the home’s structure when damaged by covered earthquake shaking.
Personal Property
Furniture, appliances, clothing, electronics and other covered belongings may be protected when contents coverage is included.
Additional Living Expenses
If covered earthquake damage makes your home uninhabitable, your policy may provide qualifying additional living expenses.
IBC confirms that optional earthquake coverage can cover property and contents damaged by earth shaking and that homeowners unable to return home because of insured damage may, depending on their policy, have additional-living-expense protection.
Simple Earthquake Insurance Example
Suppose you own a house in BC.
Its insured replacement value is:
$800,000.
A significant earthquake causes:
structural damage.
Repairs cost:
$250,000.
If you purchased earthquake insurance, your insurer would evaluate whether the damage is covered under:
your earthquake endorsement.
The amount the insurer pays would depend on:
The deductible
Coverage limit
Policy wording
Type of damage
and:
Other applicable conditions.
This is where earthquake insurance becomes more complicated than:
ordinary home deductibles.
Earthquake Deductibles Work Differently
Your normal home insurance deductible might be:
$1,000
or:
$2,500.
Earthquake deductibles can be:
much larger.
In particular, earthquake deductibles are often expressed as:
a percentage.
For BC strata corporations, the Province explains that earthquake deductibles are typically much higher than ordinary deductibles and can range from 10% to 20% of the building’s full replacement value, rather than being based simply on the amount of the loss.
This distinction is extremely important.
Example of a Percentage Earthquake Deductible
Suppose a property has an insured value of:
$1,000,000.
Assume, purely for illustration, an earthquake deductible of:
10%.
That could mean:
$100,000
of deductible exposure, depending on how the policy calculates and applies the deductible.
That’s very different from:
a $1,000 home insurance deductible.
This is why you shouldn’t evaluate earthquake insurance based solely on:
whether the endorsement exists.
You also need to know:
how the deductible is calculated.
Ask Exactly What the Percentage Applies To
Don’t simply ask your broker:
“What’s my earthquake deductible?”
Instead ask:
“What amount is the earthquake deductible percentage applied to?”
It could be based on a value specified in:
the actual insurance contract.
Ask for a dollar illustration using:
your property.
That makes the financial exposure much easier to understand.
Earthquake Insurance for Detached Homeowners
If you own a detached house, earthquake coverage can potentially address damage to:
the insured building
and:
insured contents,
depending on your policy.
When comparing coverage, ask whether it includes:
Dwelling
Detached structures
Personal belongings
Additional living expenses
Debris removal
and other earthquake-related costs.
Also verify:
coverage limits and sublimits.
What About Rebuilding Costs?
After a major earthquake, reconstruction costs can potentially be complicated by:
Labour demand
Material availability
Contractor capacity
and:
Building requirements.
Your ordinary home-insurance replacement-cost limit therefore remains an important consideration even when earthquake coverage is added.
BCFSA specifically encourages consumers to ask whether they understand what it would cost to:
rebuild their home
and:
replace their belongings.
Review your insured replacement value periodically.
Earthquake Insurance for Condo and Strata Owners
This is where earthquake insurance becomes considerably more complicated.
If you own a condo in BC, there can be:
two separate insurance layers.
Layer 1
Strata Corporation Insurance
and:
Layer 2
Your Personal Condo Insurance
These policies protect different interests.
Does a BC Strata Have to Buy Earthquake Insurance?
No.
The Province of British Columbia says strata corporations aren’t required to obtain earthquake insurance because earthquake isn’t one of the perils required by the applicable regulation.
However, the Province says strata corporations in earthquake-prone areas are:
strongly advised
to purchase it.
This means condo owners shouldn’t simply assume:
“The building is insured, therefore the strata has earthquake coverage.”
Check.
Ask Your Strata for Its Insurance Summary
If you own a strata unit, review the strata corporation’s:
current insurance information.
Specifically identify:
Is earthquake coverage included?
What is the building’s replacement value?
What percentage earthquake deductible applies?
What is the resulting dollar deductible?
and:
How could that deductible affect individual owners?
This can reveal a potentially substantial personal financial exposure.
The Strata Earthquake Deductible Problem
Suppose a strata building has a replacement value of:
$50 million.
Assume its earthquake deductible is:
15%.
For illustration:
$50,000,000 × 15% =
$7.5 million
potential deductible.
That isn’t a typo.
Percentage-based catastrophe deductibles can create very large numbers.
The Province specifically notes that strata earthquake deductibles can range from 10% to 20% of the building’s full replacement value and recommends discussing the deductible with the strata’s insurance broker.
Could Condo Owners Be Assessed for an Earthquake Deductible?
Potentially, strata owners need to understand their possible share of major deductibles and how their own unit-owner policy responds.
IBC notes that condo-owner insurance can include loss assessment coverage, which pays an owner’s share up to a stated limit, subject to policy terms and potentially a deductible, when major property or liability losses involving common property exceed applicable strata coverage.
Don’t assume your personal condo policy automatically covers:
any size of earthquake assessment.
Ask specifically about:
Earthquake deductible assessment
Loss assessment
Maximum limit
and:
Any earthquake-specific deductible or exclusion.
Example: Strata Earthquake Assessment
Suppose an earthquake produces major covered damage.
The strata corporation has:
earthquake insurance,
but also a:
multi-million-dollar earthquake deductible.
Individual owners could potentially face financial consequences depending on:
Strata rules
Insurance arrangements
Cause and location of damage
and:
Applicable law.
If your personal condo insurance has inadequate assessment protection:
a substantial portion could potentially remain your responsibility.
This is why strata owners should evaluate both:
building insurance and personal condo insurance.
Your Strata Policy Doesn’t Cover All Your Belongings
The Province of BC emphasizes that a strata corporation’s policy doesn’t cover an individual owner’s:
personal belongings.
Your condo policy is important for things such as:
Furniture
Clothing
Electronics
Personal property
and potentially:
Additional living expenses.
You therefore shouldn’t rely solely on:
the strata corporation’s policy.
Earthquake Insurance for Renters
Renters also face earthquake risk.
You may think:
“I don’t own the building, so earthquake insurance doesn’t matter.”
But your landlord’s insurance generally doesn’t protect:
your belongings.
The Province of BC says a landlord’s insurance doesn’t cover a tenant’s personal belongings or additional living expenses.
Tenant insurance can protect:
Furniture
Clothing
Electronics
Personal possessions
and:
Additional living expenses,
depending on the policy.
Can BC Renters Buy Earthquake Coverage?
Yes, earthquake protection may be available as additional coverage on tenant insurance.
The Province specifically notes that strata tenants can purchase earthquake coverage and recommends discussing the earthquake deductible with an insurance broker.
This can be particularly relevant if you own:
substantial personal property.
Example for a Vancouver Renter
Suppose you’re renting an apartment and own:
Furniture: $12,000
Electronics: $8,000
Clothing: $10,000
Sports equipment: $5,000
Other belongings: $15,000
Total:
$50,000.
An earthquake severely damages your belongings and makes your apartment uninhabitable.
Your landlord’s insurance isn’t designed to reimburse:
your personal property.
Your own tenant policy and earthquake endorsement would determine whether qualifying losses are covered.
Additional Living Expenses After an Earthquake
Imagine your home survives but requires:
six months of major repairs.
You may need:
Temporary accommodation
Additional meal expenses
Moving costs
or other qualifying increased living expenses.
IBC says homeowners who can’t return home because of insured earthquake damage may be entitled to:
additional living expenses,
depending on their coverage.
Ask:
What’s my ALE limit?
How long can benefits continue?
Does earthquake coverage activate it?
and:
What expenses qualify?
What About Fire After an Earthquake?
This is an important distinction.
Earthquake shaking and:
fire following an earthquake
aren’t necessarily treated identically.
IBC states that although earthquake and other earth movement are generally excluded under standard home insurance, resulting damage from a:
fire or explosion
caused by earth movement would be covered under the standard framework it describes.
Still, don’t rely on a general rule when making a major financial decision.
Ask your insurer specifically:
If an earthquake causes a fire that destroys my home, how does my policy respond?
Earthquake vs. Tsunami Coverage
An earthquake can trigger:
other hazards.
That doesn’t mean every resulting loss is automatically covered by an:
earthquake endorsement.
For example, coastal residents should separately ask about:
Tsunami
Overland water
Flood
and:
Sewer backup.
Insurance responds based on:
the cause of loss and policy wording.
Don’t assume buying earthquake coverage automatically provides:
comprehensive flood protection.
Earthquake vs. Landslide
Earth movement can include multiple causes.
A policy’s treatment of:
Earthquake
Landslide
Subsidence
Erosion
and other ground movement can differ.
IBC lists landslides, earthquakes and other earth movements among generally excluded home-policy perils while noting that earthquake coverage can be purchased as additional protection.
Read the definitions carefully.
What Earthquake Insurance May Not Cover
Exclusions vary, but you should specifically ask about:
Land
Landscaping
Earth movement other than covered earthquake
Flood or tsunami
Pre-existing structural damage
Certain detached structures
High-value belongings
and:
Other policy-specific exclusions.
Never assume:
“earthquake insurance”
means every financial consequence following an earthquake is insured.
Does Government Disaster Assistance Cover Earthquake Damage?
This is particularly important in BC.
Don’t assume:
“If a catastrophic earthquake occurs, the government will pay for my uninsured house.”
BC’s current Disaster Financial Assistance program is intended for sudden, unexpected and uninsurable essential losses.
The Province specifically lists:
earthquake damage
among private-sector insurable damages that aren’t eligible for DFA.
The Province’s earthquake-preparedness guidance is even more direct: Disaster Financial Assistance isn’t available for losses due to an earthquake, so residents should discuss coverage with an insurer or insurance representative.
This is a major reason to make the earthquake-insurance decision:
before a disaster.
What If the Earthquake Deductible Is Too High?
This is one of the strongest arguments people make against earthquake insurance.
Imagine your deductible exposure is:
tens of thousands of dollars.
You might wonder:
“What’s the point?”
The answer depends on the size of:
catastrophic loss you’re protecting against.
Suppose:
Potential deductible: $75,000
but:
Potential rebuilding loss: $700,000.
A $75,000 deductible is painful.
But an uninsured $700,000 loss could be:
financially devastating.
Earthquake insurance should therefore be evaluated as protection against:
catastrophic loss
rather than small cosmetic damage.
Higher vs. Lower Earthquake Deductible
A lower deductible may provide:
stronger protection
but can generally cost more when offered.
A higher deductible may:
reduce premium
but increase your out-of-pocket exposure.
The Province specifically suggests asking your broker whether a high earthquake deductible can be:
lowered.
Compare the options in:
actual dollars,
not percentages alone.
Example
Suppose your insured dwelling value is:
$900,000.
Illustrative options:
| Earthquake Deductible | Illustrative Dollar Amount |
|---|---|
| 5% | $45,000 |
| 10% | $90,000 |
| 15% | $135,000 |
| 20% | $180,000 |
These figures are purely mathematical examples. Your policy may calculate its deductible differently, and available options vary by insurer.
The point is:
percentage deductibles can become very large very quickly.
How Much Earthquake Insurance Do You Need?
For a homeowner, start by reviewing:
Dwelling Replacement Cost
Not simply:
market value.
The amount you paid for your house includes:
Land
Location
Local property-market conditions
and other factors.
Insurance is generally concerned with:
rebuilding the insured structure,
subject to policy terms.
Then review:
Contents
Additional living expenses
Detached structures
and:
Other applicable limits.
Market Value vs. Replacement Cost
Suppose your home could sell for:
$1.4 million.
That doesn’t automatically mean:
$1.4 million
is the appropriate dwelling replacement-cost limit.
The land remains after:
many insured losses.
Rebuilding cost is a different concept from:
real-estate market value.
Ask your insurer how your:
dwelling replacement value
was calculated.
How Much Earthquake Coverage Does a Condo Owner Need?
For strata owners, the calculation is different.
Review:
1. Personal Property
How much would replacing your belongings cost?
2. Unit Improvements
What upgrades have you made?
3. Additional Living Expenses
How long could you afford to live elsewhere?
4. Strata Deductible Exposure
What’s the strata’s earthquake deductible?
5. Loss Assessment Protection
How much does your personal policy provide?
These numbers should be reviewed:
together.
Earthquake Insurance Cost in BC
There isn’t one meaningful universal premium.
Pricing can vary according to factors such as:
Location
Building construction
Replacement value
Deductible
Coverage limits
Property characteristics
Insurer
and:
Underwriting criteria.
A home in one BC community can therefore receive a very different quote from:
a seemingly similar home elsewhere.
Get current quotes based on:
your exact property.
Don’t Compare Earthquake Policies by Premium Alone
Suppose:
Policy A
Costs less.
But it has:
Higher deductible
Lower contents protection
and:
Lower additional-living-expense limit.
Policy B
Costs more.
But provides:
Lower deductible
Higher limits
and:
Broader coverage.
Policy A isn’t necessarily:
the better value.
Compare what happens after:
a major loss.
Homebuyers Should Check Earthquake Insurance Early
If you’re buying property in BC, investigate insurance:
before completing the purchase.
BCFSA notes that insurers have become increasingly cautious about properties exposed to natural-catastrophe risks, including earthquakes, wildfires and flooding, and its real-estate guidance recommends considering insurance conditions in purchase contracts.
Ask for insurance quotes while you still have time to understand:
cost and availability.
Buying a BC Condo? Check the Strata Insurance Too
Before purchasing a condo, don’t stop at:
your own condo-insurance quote.
Review the strata corporation’s current insurance information.
Look for:
Earthquake coverage
Replacement value
Earthquake deductible percentage
and:
Potential owner exposure.
A very large earthquake deductible can be an important:
ownership risk.
Earthquake Retrofitting and Risk Reduction
Insurance is only one part of:
earthquake preparedness.
Homeowners can also reduce physical risks.
Potential measures may include appropriately:
Securing tall furniture
Anchoring vulnerable equipment
Securing water heaters
Strengthening structural components where appropriate
and:
Keeping heavy items away from unsafe locations.
IBC recommends earthquake preparedness and property-resilience measures alongside understanding insurance coverage.
For structural changes, obtain advice from:
appropriately qualified professionals.
Prepare an Emergency Kit Too
Insurance helps with:
financial recovery.
It doesn’t replace:
emergency preparation.
The Province recommends having at least three days of emergency supplies and says having:
one to two weeks
is a good idea.
Residents should also prepare:
grab-and-go bags
for household members, including pets.
After a major earthquake, utilities, transportation and essential services may be disrupted.
Create a Home Inventory
Before an earthquake:
document your belongings.
Photograph:
Rooms
Furniture
Electronics
Appliances
Tools
Jewellery
Collectibles
and:
Other valuable possessions.
Keep relevant receipts and records somewhere:
secure and accessible.
A good home inventory can make it easier to document:
what was lost.
What to Do After an Earthquake
If your property is damaged:
1. Prioritize Safety
Follow emergency instructions and don’t enter:
an unsafe structure.
2. Contact Your Insurer
Report the loss as soon as reasonably possible.
3. Document Damage
When safe, take:
photographs and videos.
4. Prevent Additional Damage
Take reasonable steps permitted by your policy and safety conditions to prevent:
further loss.
5. Keep Receipts
Retain receipts for qualifying:
Temporary accommodation
Meals
Emergency repairs
and:
Other expenses.
6. Don’t Discard Everything Immediately
Unless safety requires it, document damaged property before:
disposal.
15 Questions to Ask Your BC Insurance Broker
Before buying or renewing earthquake insurance, ask:
- Does my current policy include earthquake shaking?
- What exactly does the earthquake endorsement cover?
- Is my building covered?
- Are my belongings covered?
- What is my earthquake coverage limit?
- What percentage deductible applies?
- What dollar amount does that represent today?
- What value is the deductible percentage calculated against?
- Can I choose a lower deductible?
- Are additional living expenses included?
- How much ALE coverage do I have?
- Is fire following an earthquake treated differently?
- What about tsunami or flood damage?
- What earthquake-related losses are excluded?
- If I’m a strata owner, how does my policy respond to an earthquake deductible assessment?
These questions are more useful than simply asking:
“Do I have earthquake insurance?”
Common Earthquake Insurance Mistakes
Mistake 1: Assuming Standard Home Insurance Covers Earthquakes
Earthquake shaking is generally:
optional coverage.
Mistake 2: Ignoring the Deductible
A percentage deductible can equal:
tens or hundreds of thousands of dollars.
Mistake 3: Condo Owners Relying Only on Strata Insurance
Your belongings and personal exposures require:
separate consideration.
Mistake 4: Renters Assuming They Have Nothing to Lose
Your personal belongings can still represent:
substantial value.
Mistake 5: Assuming Government Assistance Will Pay
BC’s DFA program doesn’t cover privately insurable earthquake damage.
Mistake 6: Confusing Earthquake and Flood Coverage
An earthquake endorsement doesn’t necessarily mean:
tsunami or flood damage is covered.
Mistake 7: Looking Only at Premium
Compare:
limits, deductible and exclusions.
Frequently Asked Questions
Is earthquake insurance included in BC home insurance?
Generally, earthquake shaking coverage isn’t included automatically in a standard home policy. It is typically available as optional coverage.
Is earthquake insurance mandatory in British Columbia?
Earthquake insurance isn’t generally mandatory simply because you own a home. For strata corporations, the Province specifically says earthquake insurance isn’t legally required under the strata insurance regulation, though it strongly advises earthquake-prone stratas to consider it.
Does earthquake insurance cover my belongings?
Optional earthquake insurance may cover qualifying earthquake damage to property and contents, depending on the policy.
Why are earthquake deductibles so high?
Earthquake losses can affect many properties simultaneously and produce catastrophic losses. Deductibles can therefore be significantly larger than ordinary home deductibles. For BC strata policies, the Province says earthquake deductibles can commonly range from 10% to 20% of full building replacement value.
Does strata insurance cover my personal belongings?
No. The Province states that a strata corporation’s insurance doesn’t cover an individual owner’s personal belongings.
Can renters buy earthquake insurance in BC?
Earthquake protection can be available to tenants as additional coverage. The Province recommends tenants discuss earthquake coverage and deductibles with an insurance broker.
Will BC government disaster assistance pay if I don’t have earthquake insurance?
Don’t rely on it. The Province currently lists earthquake damage among privately insurable losses that aren’t eligible for Disaster Financial Assistance.
Does earthquake insurance cover temporary accommodation?
It may. IBC says homeowners unable to return home because of insured earthquake damage may be entitled to additional living expenses, depending on their policy.
Does earthquake insurance cover tsunami damage?
Don’t assume so. Earthquake shaking and water-related losses can be treated as different causes of loss. Ask your insurer specifically about tsunami and overland-water coverage.
Should condo owners buy their own earthquake coverage if the strata has earthquake insurance?
They should at least evaluate their personal exposure. Strata insurance doesn’t replace personal contents coverage, and owners should understand how their unit policy handles additional living expenses, earthquake coverage and potential strata deductible assessments.
Key Takeaways
Earthquake insurance in British Columbia is primarily protection against:
a potentially catastrophic financial loss.
Standard home insurance generally doesn’t include damage caused directly by:
earthquake shaking.
Optional earthquake coverage can protect qualifying:
Buildings
Contents
and potentially:
Additional living expenses.
But buying the endorsement isn’t the end of the decision.
You need to understand:
the deductible.
For strata properties in particular, earthquake deductibles can be calculated as a percentage of the building’s full replacement value and may range from 10% to 20%.
Homeowners should review:
Replacement cost
Contents limits
ALE
Deductibles
and:
Exclusions.
Condo owners should additionally review:
Strata earthquake insurance
Strata deductible
and:
Personal loss-assessment protection.
Renters should remember that:
the landlord’s insurance doesn’t protect their belongings.
Most importantly, don’t assume government disaster assistance will substitute for insurance. BC currently excludes privately insurable earthquake damage from its Disaster Financial Assistance program.
The most useful question isn’t simply:
“Do I need earthquake insurance?”
It’s:
Could I financially recover if a major earthquake seriously damaged my home and I didn’t have it?
Disclaimer
This article is for general educational and informational purposes only and doesn’t constitute personalized insurance, legal, financial, engineering or real-estate advice. Earthquake insurance availability, premiums, deductibles, exclusions, limits and policy wording vary by insurer and property. BC insurance and disaster-assistance rules can also change. Review your actual policy and consult a licensed BC insurance professional when making coverage decisions.