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About 50% of B.C. homeowners have earthquake insurance


March 9, 2012   by Canadian Underwriter


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Roughly half of British Columbia homeowners add earthquake insurance to their home insurance policies despite the fact that earthquake insurance is widely available in B.C., reported Square One, a property insurer.

Square One says that although many homeowners know they should get earthquake insurance, they don’t. Commonly, they cite the following reasons:

  • The government will provide disaster relief to residents.
  • Insurance companies won’t have enough money to pay in the event of an earthquake.
  • Earthquake insurance is too expensive.

“These are common misconceptions,” said Daniel Mirkovic, president and CEO of Square One Insurance. “While earthquake insurance is by no means cheap — in fact it can account for as much as one-third of a home insurance policy — B.C. residents have access to better coverage and lower rates in relation to other earthquake-prone areas.”

A B.C. house insured for $300,000 with $210,000 in personal property and $75,000 in additional living expenses would have an annual earthquake premium ranging from $225 to $425. A California house insured for $300,000 with only $100,000 in personal property and $25,000 in additional living expenses would have an annual earthquake premium of about $865, a Square One release says.