If you rent an apartment or condo in Vancouver, Richmond, Burnaby, or anywhere else in British Columbia, you’ve probably heard about “The Big One.” Sitting near one of the world’s most active fault lines and earthquake zones, experts agree that a significant earthquake will eventually strike the West Coast. The only question is when.
British Columbia faces a serious long-term earthquake risk. Natural Resources Canada has estimated a 30% chance of a major earthquake in B.C. within 50 years, and Canada experiences roughly 4,000 earthquakes each year. B.C. alone records several thousand earthquakes annually, though most are too small to be felt.
Many renters assume their landlord’s insurance will protect them if that happens. Others believe tenant insurance automatically covers earthquakes.
Unfortunately, neither assumption is always true.
Here’s what every B.C. renter should know about earthquake coverage and whether tenant insurance protects your belongings after a major quake.
Does tenant insurance cover earthquake damage?
Usually, no.
A standard tenant insurance policy generally does not include earthquake coverage automatically. Earthquake protection is typically available as an optional endorsement or add-on that you purchase for an additional premium.
The Insurance Bureau of Canada says earthquake damage is not included in a standard policy, but it can usually be purchased as optional coverage.
Without this endorsement, significant damage caused directly by an earthquake is generally excluded from your policy.
If earthquake protection is important to you, make sure you ask your insurance broker whether it has been added to your policy.
What happens if an earthquake damages your belongings?
In the event of an earthquake in Metro Vancouver, let’s say your apartment building survives, but inside your unit:
- Your television falls and breaks.
- Bookshelves collapse.
- Your laptop is destroyed.
- Your dishes and furniture are damaged.
- A water pipe bursts after the shaking, damaging your clothing and electronics.
If the damage is caused directly or indirectly by the earthquake, whether you’re covered depends on whether you purchased earthquake insurance coverage.
Earthquake coverage typically covers damage caused by ground shaking, but it generally does not cover other natural disasters such as tsunamis, tidal waves, or coastal flooding triggered by an earthquake. Flood and water-related coverage can vary, so renters should ask their broker exactly what is and is not included.
Without the endorsement, you could be responsible for replacing everything yourself.
Doesn’t my landlord’s insurance cover this?
This is one of the biggest misunderstandings renters have.
Your landlord’s insurance generally protects the building itself, including damage to the home’s structure such as foundation cracks, damaged walls, and broken gas lines caused by a covered earthquake. If you live in a condominium, the strata corporation’s insurance policy may also help cover damage to the building’s common property and shared structures. Neither policy generally protects your personal belongings.
Even if your landlord has comprehensive insurance, it typically won’t pay to replace:
- Clothing
- Furniture
- Electronics
- Kitchenware
- Bicycles
- Sports equipment
- Other personal possessions
That’s why tenant insurance exists.
What else does tenant insurance coverage protect?
Even without earthquake insurance, tenant insurance provides valuable protection against many other risks.
Depending on your policy, this may include damage caused by:
- Fire
- Smoke
- Theft
- Vandalism
- Certain types of water damage
- Windstorms
- Lightning
It also usually includes personal liability coverage if you’re found legally responsible for accidentally damaging someone else’s property or causing bodily injury.
Many policies also include additional living expenses if a covered claim makes your rental unit temporarily uninhabitable.
Why earthquake coverage matters in British Columbia
British Columbia sits along the Cascadia Subduction Zone, one of the regions with the most seismic activity regions in North America.
While large earthquakes are uncommon, experts have long warned that the region faces a significant long-term earthquake risk.
A recent B.C. government risk scenario found that a magnitude-9.0 earthquake off Vancouver Island could cause an estimated $128 billion in costs, destroy 18,000 buildings, and extensively damage another 10,000.
Even a moderate earthquake could cause extensive damage to homes, apartment buildings, utilities, and infrastructure throughout Metro Vancouver and Vancouver Island.
For many renters, replacing thousands of dollars’ worth of belongings and personal property out of pocket would be financially devastating.
Adding earthquake protection can provide valuable peace of mind.
What does earthquake insurance cost? Is it expensive?
Many renters are surprised to learn that adding earthquake insurance is often more affordable than they expect.
The cost depends on factors such as:
- Where you live
- The age and construction of your building
- The value of your insured belongings
- Your deductible
- Your insurer
Earthquake coverage usually costs extra. One Canadian insurance marketplace estimates that earthquake insurance can add about 25% to 35% to a home insurance premium in higher-risk areas, though the actual cost depends on the insurer, location, coverage limits, and deductible.
Because every situation is different, it’s worth asking your broker for a quote rather than assuming it’s unaffordable.
What deductible applies?
Earthquake claims often have a separate earthquake deductible that differs from your regular policy deductible.
Rather than a fixed dollar amount, it is commonly calculated as a percentage of the insured value covered under your policy.
The Financial Consumer Agency of Canada says earthquake deductibles may range from 5% to 20% of the coverage limit. For tenants in B.C., Aviva lists earthquake insurance deductible options of 5%, 10%, 15%, and 20%.
That percentage can translate into a large out-of-pocket cost. For example, a $300,000 insured value with a 2% to 20% earthquake insurance deductible could mean paying $6,000 to $60,000 before insurance responds.
Your broker can explain exactly how your deductible works before you purchase coverage.
Is earthquake coverage right for you?
There’s no one-size-fits-all answer.
Some renters have only a few thousand dollars in belongings. Others own expensive computers, cameras, furniture, jewelry, bicycles, or home office equipment.
Ask yourself:
- Could I afford to replace everything I own tomorrow?
- Would I have somewhere else to stay if my building became unsafe?
- Would rebuilding my life after a major earthquake create financial hardship?
For many renters, those questions make earthquake coverage worth considering.
Protect your belongings with King Insurance
No one can predict when the next major earthquake will happen. What you can control is whether you’re financially prepared.
At King Insurance, our experienced insurance representatives can explain exactly what your tenant or earthquake insurance covers, identify any gaps in protection, and help you decide whether earthquake coverage makes sense for your situation.
Whether you’re renting your first apartment or have lived in the same home for years, we’ll help you find coverage that fits your needs and your budget.
About King Insurance
Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria-Fraserview, and nearby neighbourhoods such as Marine Gateway and Marine Landing, as well as clients throughout Richmond and the Lower Mainland.
Ka Hing Cheung is proud to work in Canada’s insurance industry, helping BC residents protect what matters most. He is committed to ongoing learning and enjoys helping customers find the right insurance coverage at competitive rates while making sure they understand their options.
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