With Sonnet Shift usage-based insurance, you're in control.
How does earthquake coverage work?
If you live on the coast of British Columbia or near the St. Lawrence and Ottawa River valleys, chances are you’ve felt an earthquake tremor or two. In fact, people living in these areas could notice about one a week.
It’s a scary thought. Currently, your home insurance plan might not cover damage from an earthquake. You might want to consider adding earthquake coverage to your home insurance policy.
Let’s go over what you need to know to make sure you’re protected.
What's on this page?
What is earthquake insurance?
Earthquake insurance is an optional add-on that protects your home and everything inside it from damage caused by the earth shaking. Since it isn’t included in a standard policy, you’ll need to add it to your existing coverage.
What’s covered by earthquake insurance?
Earthquake coverage helps you rebuild and move forward after a quake. It covers loss of, or damage to, your home and personal belongings caused by tremors or shaking from an earthquake.
Here’s how this coverage helps you:
Dwelling coverage: This helps pay to repair or rebuild the structure of your home. If you own a condo, it covers the interior of your unit.
Personal belongings: This helps replace your things, like furniture and appliances.
Additional living expenses: If you can’t stay in your home, we’ll help pay for things like hotel rooms and meals until you can move back in.
Earthquake loss assessments: If you’re a condo owner, this covers your share of costs for damage to common areas in a shared property.
What isn’t covered by earthquake insurance?
While earthquake insurance helps with a lot, there are some things it typically won’t cover:
Damage caused by tsunamis or tidal waves. Even if an earthquake causes these events, they usually require separate coverage.
Damage caused by wind, hail, rain or snow that enter your home through openings in the roof or walls that existed before the earthquake occurred
Damage caused by surface water or waterborne objects, even if caused by an earthquake. Look into overland water coverage for this type of damage.
Land value. Insurance is meant to protect your home and belongings, not the value of the land itself. For example, if an earthquake makes your property less valuable, your policy likely won't provide compensation for that loss.
How much does earthquake insurance cost?
Your premium will depend on various factors, such as your home's location and how much coverage you need.
Earthquake coverage also comes with a separate deductible. It doesn’t come as a standard dollar amount – it’s calculated as a percentage of the overall cost to repair your home.
Your deductible options will depend on various risk factors, including your home’s structure, size and location. If you’ve got a big home on a fault line, you can expect your deductible (and the additional premium you pay) to be on the higher end.
Is earthquake insurance worth it?
To decide if you need to add this coverage, it helps to understand the risk in your area.
While earthquakes can happen anywhere in Canada, some regions have a higher risk than others:
High risk: The B.C. coast, parts of the Yukon and areas along the Ottawa and St. Lawrence Rivers (including Montreal and Quebec City).
Moderate risk: The western shore of Lake Ontario and western New Brunswick.
Want to check your risk level? Take a look at Canada’s seismic hazard map to see how likely an earthquake is in your neighborhood.
Protect your home from the unexpected
By understanding your options and protecting your property, you’re looking out for your home, your stuff – and your wallet. It’s a good idea to review your policy once a year to make sure your coverage still fits your life – and that you’re getting the best protection possible.
At Sonnet, we’re here to talk about your needs and the best options for you. Contact us and we’ll answer any questions you may have so you’re prepared.
Are you a Sonnet customer?
Log in to chat so we can talk specifics.