Are my home and belongings covered if there is an earthquake?
Coverage for earthquake damage is typically not included in your standard home insurance policy (except for fire or explosion resulting from an earthquake) but can be purchased as an add-on to your existing coverage.
Earthquake insurance generally covers loss or damage caused to your home and your belongings by the actual shaking of the earth.
Earthquake coverage should be considered whether you live in a house, condominium or rental property. Regardless of where you live, you will be covered for additional living expenses should your home be damaged and you are unable to live in it while it is being repaired.
If you own a house you can typically purchase coverage to cover loss or damage to the building only, or to your building and your belongings.
If you own a condo you have special insurance needs and depending on Strata bylaws, Strata unit owners may be asked to pay part of the Strata earthquake deductible in the event of a claim – fortunately, additional coverage can be added to your policy. Check you Strata bylaws and then ask your insurer for details.
If you rent, you can buy earthquake insurance to cover your belongings.
Damage from a tsunami is not covered under earthquake insurance.
How Earthquake Insurance works
A deductible is the amount that you have to pay in the event of a claim. Earthquake insurance always has a separate deductible and it is typically a percentage of how much your home and or belongings are insured for.
This makes earthquake deductibles generally much higher than the deductible on your standard home insurance policy.
Most insurance companies consider the following, when determining your deductible:
Where you live – your deductible is dependent on the risk of an earthquake in your area.
What you decide to cover – if you own a house, your deductible will be dependent on whether you have coverage for your belongings, your building, or both.
You can also opt for a higher deductible that could save you money on your yearly premium.