Coastal BC is Canada's highest-risk region for a damaging earthquake. Yet earthquake damage isn't covered by a standard home policy. It's an add-on, with a deductible much larger than anything else in your insurance. For condo owners, the risk sits in the strata's deductible, which is split among every owner. Here's how the coverage works, what it costs you when it's needed, and what to check before you buy.
How earthquake coverage works
- It's an endorsement, added to a home or condo policy for an extra premium. Shaking damage isn't covered without it.
- Fire following an earthquake is generally covered by standard policies, even without the endorsement.
- The deductible is a percentage of your coverage, often 10% to 20%, not a flat amount. On a house insured for $900,000, a 15% deductible means the first $135,000 of damage is yours.
- Premiums depend on location, soil, age and construction. Older unreinforced buildings and homes on soft soils, such as parts of Richmond and Delta, cost more to insure.
Condos and townhouses
Strata building policies usually include earthquake coverage, with a deductible that's a percentage of the whole building's value. If that deductible is 15% of a $60 million building, it's $9 million, shared by unit entitlement. An owner with 0.85% pays about $76,500.
You cover that with the earthquake deductible, or loss assessment, coverage on your own condo policy. It's often a separate, lower limit than the water deductible coverage. Check both numbers.
The strata guide calculator works out your share from the insurance summary.
Is it worth it?
For most owners in the Lower Mainland and on Vancouver Island, yes. Without it, a major earthquake could leave you owing a mortgage on a home that needs rebuilding, with no insurance money.
The deductible is large, but the coverage protects against the catastrophic case. Ask for quotes at two or three deductible levels and compare the premium saved with the extra risk you'd carry.
Before you buy
- For a house: get an insurance quote, including earthquake coverage, during your subject period. Some older or soft-soil homes are expensive to insure.
- For a strata: read the insurance summary for the earthquake deductible and the building's insured value, and work out your share.
- Ask your insurer what your policy's earthquake deductible coverage limit is, not just the water limit.
- For older buildings: ask whether there's been a seismic assessment or upgrade. Look in the depreciation report and minutes.
Questions people ask us
Is earthquake insurance worth it in BC?
For most owners in the Lower Mainland and on Vancouver Island, yes. Standard policies don't cover shaking damage, and without coverage a major earthquake could leave you with a mortgage on a damaged home and no insurance money.
How much is the earthquake deductible in BC?
Usually a percentage of your coverage, often 10% to 20%. On a house insured for $900,000, a 15% deductible is $135,000.
Does home insurance cover earthquakes in BC?
Not shaking damage, unless you add earthquake coverage. Fire following an earthquake is generally covered by standard policies.
How does earthquake insurance work for a condo?
The strata's building policy usually includes earthquake coverage with a deductible that's a percentage of the building's value, shared by unit entitlement. Owners cover their share with earthquake deductible coverage on their own condo policy.
How much earthquake deductible coverage do I need for my condo?
Your unit-entitlement share of the strata's earthquake deductible. On a $60 million building with a 15% deductible, an owner with 0.85% needs about $76,500.
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Buying in an older building or on soft soil?
Dan can pull the strata's insurance summary and seismic history, and flag what to ask your insurer before you remove subjects.
