Earthquake Insurance in BC: What Homeowners Should Know

BC has the highest earthquake hazard in Canada, yet a standard home insurance policy doesn't cover earthquake damage. Here is what the risk looks like, how earthquake coverage and its deductible work, what changes in a strata, and the practical steps that make an older home safer.

The short version

BC's earthquake risk in plain terms

Earthquakes are common in BC, but most are too small to feel. PreparedBC says about 4,000 are recorded in the province each year, and that earthquakes strong enough to cause structural damage happen about once a decade. The Province's building code bulletins note that BC has the highest seismic hazard values in Canada. Natural Resources Canada describes earthquakes in the southwest coming from:

• The continental crust. Earthquakes happen within the crust under the region, such as the magnitude 7.3 earthquake on central Vancouver Island in 1946.
• The ocean plate. Earthquakes also happen within the ocean plate that slides beneath the coast, such as the magnitude 6.5 earthquake beneath Seattle in 1965.
• The Cascadia subduction zone. It runs offshore from the north tip of Vancouver Island to northern California. Its last great earthquake, about magnitude 9, struck on January 26, 1700, and 13 great earthquakes have occurred there in the last 6,000 years, at irregular intervals of hundreds of years.

Earthquakes can't be predicted, so the practical question is how well your home, and your finances, would come through one.

What a standard home policy covers

• Earthquake damage is excluded. Standard home policies don't cover earthquakes, landslides or other earth movement. Earthquake coverage is usually an optional add-on that you have to ask for.
• Fire is covered. Damage from a fire or explosion caused by an earthquake is generally covered under a standard policy.
• Tsunamis and landslides. Earthquake coverage may not extend to them. One insurer's published terms, for example, exclude landslides, snowslides and tsunamis from its earthquake coverage, so ask how your policy treats them if you live near the water or on a slope.
• Government help won't fill the gap. BC's Disaster Financial Assistance covers only uninsurable losses, and the Province lists earthquakes among the insurable damage it won't pay for.

Earthquake coverage and its deductible

Earthquake coverage for a house can be added for the building, your belongings and the extra cost of living elsewhere while your home is repaired. Its deductible works differently from the rest of your policy:

• It is separate and usually higher. There is almost always a separate deductible for earthquake damage, and it tends to be higher than for other losses.
• It can be a percentage. It may be set as a percentage of your coverage limit, not of the damage. One insurer's published example: with $100,000 of coverage for your belongings and a 5% earthquake deductible, you pay the first $5,000.
• Moderate damage can fall below it. Take a house insured for an example $900,000, with an example 10% earthquake deductible. You would pay the first $90,000 of earthquake damage to the house. If repairs cost $60,000, the policy pays nothing; if they cost $250,000, it pays $160,000, subject to your policy's limits.

The price of the coverage depends on where you live and the type of home. When you compare quotes, ask about the deductible as well as the premium, and whether a lower deductible is available, a question the Province suggests asking if you live in an earthquake zone.

In a strata: the deductible and your share

A strata corporation doesn't have to buy earthquake insurance, though the Province strongly advises stratas in earthquake-prone areas to carry it. Its earthquake deductible can range from 10% to 20% of the building's full replacement value, not of the loss, and each strata lot's share is generally based on its unit entitlement. I explain the basics, with an example, in Condo Insurance in BC. For earthquakes in particular:

• Check the summary and the table. The Form B information certificate must include the strata's insurance summary, so check it for earthquake coverage and the deductible. A table showing each unit's share of the earthquake deductible may be included with the annual general meeting notice and insurance updates, so ask for it before you remove subjects.
• Check your own earthquake coverage. A condo owner's policy can cover some or all of your share of the strata's deductible, up to a stated limit. Ask your broker whether that includes an earthquake deductible, and whether you need earthquake coverage on your own policy for it.
• Match the limit to your share. Ask your broker what your policy pays toward a strata's earthquake deductible, and compare it with your unit's share in the table.

What the 2024 building code changed

The 2024 BC Building Code took effect on March 8, 2024, and its new earthquake design requirements apply to building permits applied for on or after March 10, 2025, with some projects that were already in the approval process exempt if their permit is applied for before March 8, 2027. The update uses new seismic hazard information from Natural Resources Canada, reflecting new knowledge about active faults near Victoria and past Cascadia earthquakes. For houses and other small wood-frame buildings, the rules for bracing walls against wind and earthquake forces were substantially revised. So a home whose building permit was applied for on or after March 10, 2025 was generally designed to the newer rules, while an older home was built to the standards of its time. The City of Vancouver has its own building bylaw, so its dates can differ.

Making an older wood-frame home safer

The Insurance Bureau of Canada suggests checking a few structural points, and PreparedBC adds simple steps inside the home:

• The foundation. Is the house bolted to its foundation?
• The walls. Are the walls braced?
• Chimneys. Reinforce the ceiling joists around each chimney in the attic, to help keep bricks and mortar from falling through the ceiling.
• The water heater. Anchor it snugly to the wall with straps, and for a gas water heater, have a licensed gas contractor install a flexible gas line if needed.
• Furniture and appliances. Secure tall furniture to the wall studs, tie down appliances that could topple and add latches to cabinet doors.

A structural engineer or an experienced contractor can tell you what a particular house needs, and structural work may need a building permit, so check with your city first. If you are buying, ask the seller about any seismic work and its permits, and read your inspection report with these points in mind. I explain what an inspection covers in Home Inspections in BC.

Getting ready

• Drop, Cover and Hold On. When the shaking starts, drop to your hands and knees, cover your head and neck and take shelter under sturdy furniture, and hold on until the shaking stops.
• Supplies. PreparedBC suggests storing enough food and water for everyone in your home for at least two weeks.
• A plan. Agree on how your household will reconnect, with an in-town and an out-of-town contact and a meeting place, and expect aftershocks after the first earthquake.
• Your policy. PreparedBC suggests reviewing it every year, and your insurance representative or the Insurance Bureau of Canada can answer questions about earthquake coverage.

Questions buyers often ask me

Does home insurance cover earthquakes in BC?

Not a standard policy. Earthquake damage is excluded, though damage from a fire caused by an earthquake is generally covered. You can add earthquake coverage, usually with its own deductible.

How does an earthquake deductible work?

It is separate from your regular deductible, and it may be a percentage of your coverage limit. On an example $900,000 of coverage with an example 10% deductible, you would pay the first $90,000 of damage.

Will the government pay for earthquake damage to my home?

Don't count on it. BC's Disaster Financial Assistance covers only uninsurable losses, and the Province lists earthquakes among the insurable damage it won't pay for.

Does my strata's insurance cover me in an earthquake?

Only if the strata carries earthquake coverage, and even then each unit has a share of a deductible that can be 10% to 20% of the building's replacement value. Your own condo policy may cover some or all of your share, up to its limit, if it includes coverage for an earthquake deductible, so ask your broker.

What can I do to make an older house safer?

Have a professional check that it is bolted to its foundation and that its walls are braced, reinforce the joists around any chimney, strap the water heater and secure tall furniture to the studs.

Weighing a purchase? Read how condo insurance and strata deductibles work, the strata documents to read first and what you actually own when you buy.

This article is general information, not insurance or legal advice. The details come from the Province, Natural Resources Canada, the Insurance Bureau of Canada and an insurer's published terms, and were current at the time of writing; talk to a licensed insurance broker about your own coverage. For the Insurance Bureau of Canada's guide, see earthquake safety.