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What you need to know about earthquake insurance
An earthquake is an intense shaking of the earth's surface caused by movement around fractures in the outermost layer (also known as fault lines). An earthquake can cause severe structural damage to households and businesses, especially those located near or along a fault line. The coast of British Columbia is most endangered in Canada. Other areas prone to earthquake include the St Paul Valley. Lawrence and Ottawa, as well as parts of Nunavut, the Northwest Territories and the Yukon. If your property is damaged as a result of an earthquake, you will need earthquake insurance to cover it.
Do most home and tenant insurance cover an earthquake?
No, earthquakes do not usually come under regular home and tenant insurance policies - the good news is that earthquake coverage is often available as an add-on. If you live in an area at risk of earthquake, you should consider adding this coverage to your home or rental policy to ensure you is protected if your home or property suffers damage. Earthquakes are generally not covered by regular housing insurance policies, so you should consider adding earthquake coverage to your policy if you live in a high-risk area.
What is earthquake insurance?
Earthquake insurance covers damage to your home and property caused by earthquakes. They also cover other living expenses you may encounter as a result of the earthquake, such as alternative housing or food if you can't cook.
What does earthquake insurance cover?
Earthquake insurance usually covers insurance for
Repair damage to your home and any extended structures such as swimming pools or attached garages. Repair or replace your property if it is damaged by an earthquake. Other living expenses you may encounter as a result of an earthquake (such as a place to stay if you need to leave your home after the repair is complete). Each insurance policy includes a list of its own specific insurance policies, some of which may suit your needs better than others. Your licensed home insurance intermediary can guide you through the different types of coverage available and help you find the best policy for your situation.
What does earthquake insurance not cover?
Earthquake insurance does not usually cover many things, including saliva, floods, tsunamis, rain or snow, that enter your home due to an earthquake or damage to your vehicle as a result of the earthquake. Check your policies or contact your broker to see if there are any other exclusions you should be aware of.
What is the Average Earthquake Dependable?
Deductiblesopens pop-ups with the definition of Deductibles for earthquake insurance are generally quite high - often somewhere between 15 and 20 percent of your total damage damage limit on your home (also known as home coverage). This means that if your home coverage limit was $ 450,000, the deductible for earthquake insurance could be around $ 76,000. Houses built closer to (or directly ahead of) the break lines are likely to have more deductions than those further afield, as the risk of serious damage due to earthquakes is much higher.
Who should get earthquake insurance?
Although earthquake insurance is not mandatory, you should receive earthquake insurance if your home is in an area known to be at risk of earthquakes. Most people think that an earthquake will never happen, but the reality is that it will. If you do not have enough savings to cover the costs that could be incurred as a result of an earthquake (repairing your house, replacing damaged items or extra living costs), you should add earthquake insurance to your policy. Most people think that an earthquake will never happen, but the reality is that it will. If you do not have enough savings to cover the costs that might be caused by an earthquake, consider earthquake insurance.
