Many BC home owners not insured for Earthquake – Are you prepared?
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In light of the recent seismic activity and industry estimations that only 50% of BC homeowners purchase earthquake insurance, we felt it appropriate to pass along some information and advice.
Do I need earthquake insurance?
Considering that for many their home is their largest financial asset, a large loss to that asset can be devastating. For many who also carry a mortgage on that home the mortgage payments are still due after suffering a loss by earthquake. If your home suffered even partial damage from an earthquake, do you have the financial resources to repair the damage?
Won’t the Government provide disaster relief?
BC’s Disaster Financial Assistance Program is only provided for uninsurable losses, therefore losses due to earthquake would not be eligible for assistance.
Does my house insurance cover earthquake?
Standard insurance policies do not insure for earthquake unless coverage was selected. An additional premium is charged and is subject to a separate deductible.
What is the risk of Earthquake in my area?
The Pacific Coast is the most earthquake-prone region of Canada. In the offshore region to the west of Vancouver Island, more than 100 earthquakes of magnitude 5 or greater (large enough to cause damage had they been closer to land) have occurred during the past 70 years. The reason for the concentration of earthquakes along the west coast is the active faults, or breaks in the earth’s crust that occurs in this area.
What Should I do?
We urge you to consider preparing your family for the unexpected.
- Contact your broker about the costs associated with adding earthquake coverage to your policy.
- Visit www.getprepared.gc.ca to make a family emergency plan and put together an emergency kit that will prepare you to be self sufficient for at least 72 hours.