Living in BC or Quebec? Why Your Home Insurance Excludes 'Earthquake Damage' by Default

⚠️ 2026 Insurance Update: Due to increased seismic risk modeling, deductibles for earthquake coverage in high-risk zones (like Richmond, BC) have risen significantly. Many policies now mandate a 15% to 20% deductible, meaning you could be on the hook for the first $100,000 of repairs.

🏚️ The "Big One" Misconception

You live in Vancouver, Victoria, or Montreal. You know you reside in an active seismic zone. But you sleep soundly because you pay $150 a month for "Comprehensive Home Insurance."

Wake up.

If a 7.0 magnitude earthquake hits tomorrow and cracks your foundation in half, your standard insurance company will likely pay you $0 for the structural damage.

Standard Canadian home policies strictly exclude "Earth Movement" (Shaking). Unless you specifically purchased the costly Earthquake Endorsement, you are completely uninsured for the quake itself.

Living in BC or Quebec?

While fire caused by an earthquake is usually covered by law, the structural collapse from the shaking is not. Here is why homeowners in risk zones need to audit their policies today.

Fire vs. Shake

It is confusing. Let's clarify exactly what is covered under a standard policy versus an earthquake add-on.

Scenario	Standard Policy	With Earthquake Add-on
Gas pipe breaks & house burns down	Covered (Fire Following Earthquake)	Covered
House collapses from shaking	$0 (Not Covered)	Covered
Foundation cracks / Tilted home	$0 (Not Covered)	Covered

The Cost: High Premiums, High Deductibles

Why doesn't everyone buy it? Because it is expensive and the deductibles are terrifying.

💰 The Financial Reality (2026):

• Annual Cost: In high-risk zones, adding earthquake cover can increase your annual premium by 30% to 60%.
• The Deductible Shock: Unlike a standard $1,000 deductible, earthquake deductibles are a percentage of the rebuild value (usually 10%, 15%, or 20%).

Example: If your home rebuild cost is $800,000 and you have a 15% deductible, you must pay the first $120,000 before insurance pays a penny.

Liquefaction

In areas with soft soil (like Richmond or Delta in BC), an earthquake can turn the ground into liquid mud ("Liquefaction"). Your house might sink or tilt, becoming uninhabitable.

Standard policies absolutely exclude this. Only the specific Earthquake Endorsement covers land damage caused by liquefaction. If you live on a floodplain or reclaimed land, this coverage is not optional—it is essential for survival.

Chief Editor’s Verdict: Can You Afford to Rebuild?

If you have paid off your mortgage, you might be tempted to skip this coverage to save $500 a year. But ask yourself: "Do I have $800,000 cash in the bank to rebuild my home from scratch?"

If the answer is no, call your broker. The high deductible ($100k+) is painful, but it is infinitely better than losing the entire value of your asset ($1M+).

[Insurance & Legal Disclaimer]
Insurance availability and pricing for earthquake coverage vary drastically by postal code and insurer capacity. "Fire Following Earthquake" is generally mandated by provincial insurance acts, but coverage for shake damage is optional. Deductibles apply separately to the dwelling, contents, and detached structures. This article is for educational purposes only and does not constitute financial or legal advice. Always review your policy wordings with a licensed insurance broker.