Does My Vancouver Area Home Need Earthquake Insurance?

Depending on the day, if you ask the average Vancouverite how concerned they are about “The Big One” — a major seismic event hitting British Columbia, most would probably shrug it off or say it’s something to worry about later. However, with a recent string of quakes shaking homes throughout the Lower Mainland, many Vancouver residents are starting to question whether they are adequately prepared and protected with the right home insurance should this catastrophic event actually occur.

While no one can predict the future with certainty, scientists at Natural Resources Canada and Earthquakes Canada foresee a megathrust such as an earthquake reaching 9+ on the Richter scale hitting off the coast of BC within the next 200 years. Furthermore, they peg the odds of a major seismic event occurring within the next 50 years at 10-15%.

With that in mind, here’s what you should know about home and earthquake insurance in Vancouver and what you can do to ensure you’re covered for a worst-case scenario.

What Communities Are in the Hot Zone?

Not all regions of British Columbia are equally at risk for severe earthquake damage. Coastal communities and some areas within the Lower Mainland fall into the highest risk category, where there is a 30% chance of significant damage in the event of an earthquake. Other parts of BC, including Vancouver, Burnaby, Coquitlam, and Surrey, fall into the moderate zone, defined as having a 5-15% chance of experiencing structural damage from a major quake.

What Is Earthquake Insurance, and Do I Need It?

In general, earthquake insurance is not included in most home insurance policies in Vancouver. For insurers, there is a high risk of payout for this type of coverage, and for homeowners, the additional cost can sometimes feel like an unnecessary expense. Instead, earthquake insurance is an available add-on, with pricing based on factors like your location, the risk of earthquakes in that area, and construction of the home, as well as chosen coverage limits and deductibles.

If you don’t have earthquake coverage already, here’s why you should strongly consider adding it to your home insurance policy, particularly if you live in a higher-risk area like Vancouver.

Damages, Loss, and Living Expenses

A major earthquake can leave a trail of devastation in its wake. Not only are you potentially dealing with significant structural damage to your home but also the financial burden of rebuilding, replacing belongings, and finding temporary housing. This is what earthquake insurance is for.

Dwelling Coverage

This helps pay for repairs or rebuilding if your home is structurally damaged due to an earthquake. It’s important to note that due to the high risk of payout on the part of the insurer, earthquake insurance often comes with a higher deductible than standard home insurance. Make sure you speak with your broker about what portion of costs you’d be responsible for in the event of a claim.

Personal Property Coverage

Earthquake insurance can also cover damage to your belongings, including furniture, electronics, and personal items. If a quake causes structural damage that results in the loss of your possessions, your policy can help with replacement costs.

Loss of Use Coverage

If your home is uninhabitable after an earthquake, loss of use coverage helps pay for temporary accommodations, food, and other living expenses while repairs are being made. This can be particularly important in places like Vancouver and the Lower Mainland, where short-term housing is both difficult to find and very expensive.

Forgoing Earthquake Home Insurance in Vancouver is Not Worth the Risk

Ultimately, the choice to invest in earthquake insurance is yours to make. It requires careful consideration of what you can personally afford in the event of a worst-case scenario situation versus the cost or protection. If you have more questions related to the risk factors of your property or area, reach out to your home insurance broker for more information. With seismic activity on the rise, having coverage in place could make all the difference in protecting your home, belongings, and financial future.