Earthquake Insurance 101
Earthquake Insurance is an important coverage if you live in an Earthquake prone area, but it is often misunderstood. Many clients carry it, but don’t really understand what the coverage is, what it covers or how much they would need to pay to start a claim. So, let’s talk about the who, what, where and when of Earthquake Insurance in BC to help shed some light on this coverage option.
What is Earthquake Insurance?
Earthquake Insurance is an additional coverage purchased on top of your existing house insurance, condo insurance or tenant insurance policy. This provides you coverage for repair of your home, or replacement of your belongings if they are damaged in an Earthquake. Earthquake Insurance also provides coverage if you’re unable to live in your home post-earthquake due to the damage caused. There is a deductible for Earthquake Insurance that is separate from your standard home, condo or tenants insurance deductible. This is known as an Earthquake Insurance Deductible. Earthquake insurance deductibles can be expensive, but there are coverage options available to help make this amount more manageable. These are known as Earthquake Deductible Buy-Down Insurance if you own a house or are a tenant and Strata Earthquake Deductible Assessment Insurance if you live in a Strata property. In the event of a claim, you would need to pay your Earthquake Insurance Deductible before you would be able to access coverage, so it is very important to be sure the cost of your deductible is manageable for you and your family.
Who can purchase Earthquake Insurance?
Any person with an existing home, condo, or tenant insurance policy can purchase Earthquake Insurance in BC. If you do not have an existing home insurance policy, you can purchase a new policy and add Earthquake Insurance as an endorsement to that policy.
Where can you purchase Earthquake Insurance?
Earthquake insurance is purchased from your local insurance broker. The cost for your earthquake insurance coverage may be higher or lower depending on where in British Columbia you live, but the coverage is currently available anywhere in the province.
When can you purchase Earthquake Insurance?
You can purchase Earthquake Insurance in BC at any time during your existing insurance policy term. It is ideal to purchase it at renewal, but it can also easily be added mid-term. Coverage for Earthquake may be unavailable for a pre-determined period following an Earthquake, which can be extended if aftershocks occur; therefore, it is best to purchase before an Earthquake occurs to ensure coverage.
If you would like a quote on the cost of Earthquake Insurance for your home, or have additional questions about Earthquake Insurance Deductibles or coverage, please reach out to a Westland Insurance office near you.