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.