VANCOUVER, Dec. 18, 2012 /CNW/ - In early 2013, both Economical
Insurance and Family Insurance Solutions will stop offering earthquake
insurance to home insurance customers living in Metro Vancouver and
southern Vancouver Island. Over the past 18 months, several other home
insurance providers, including Aviva Canada, Intact Insurance and
Wawanesa Insurance, have increased earthquake insurance rates and
deductibles in BC. Several factors have prompted these changes,
● Earthquake risk models have been updated because of new geological
mapping of earthquake fault lines and subduction zones along coastal
● Damage and loss experience was worse than expected from the
earthquakes that occurred in Japan, New Zealand and Chile over the past
● More rigorous earthquake insurance guidelines, standards and
requirements have been established by the Canadian regulators; and,
● Two powerful earthquakes occurred off coastal BC on October 28 and
November 7, and measured 7.7 and 6.3 on the Richter scale,
"Clearly, many insurance providers are concerned about coastal BC's high
earthquake risk," says Daniel Mirkovic, President & CEO, Square One
Insurance. "It's not a matter of if, but when, an earthquake will hit.
One way for providers to manage their risk is to limit the amount of
earthquake coverage they offer. That means it may become increasingly
difficult to get this much needed protection."
About 50% of BC residents buy earthquake insurance, which is most
commonly sold as an add-on to home insurance policies. A few providers,
like Square One, automatically include it in their base policies. If
your provider no longer offers earthquake insurance, or if your
earthquake rate or deductible has increased, the best thing you can do
is shop around. The top two things you should consider when buying
earthquake insurance are:
● What do you want to insure?
If you own a house, you can sometimes choose to insure just your
building. While it may seem like a good way to reduce your premium, the
reality is that the cost of replacing all your belongings can really
add up. And if you own a condo, you should ensure you have enough
protection for both your belongings and any assessment that may be made
against you because of a shortfall in, or earthquake deductible for,
your strata's insurance.
● What deductible do you want?
You can typically choose from 2 or 3 earthquake deductibles. The higher
the deductible you choose, the lower the premium you pay. While you may
be tempted to choose the highest option available, you should keep in
mind that earthquake deductibles are significantly higher than standard
policy deductibles. That's because earthquakes occur less frequently
than other types of losses, but when they do, they have the potential
to cause significant damage to many homes.
All BC residents should take steps to prepare for an earthquake,
exploring your earthquake insurance options should be one of those
steps. To learn more about your earthquake insurance options, talk with
your insurance provider or visit www.squareoneinsurance.ca/earthquake-insurance.
Established in 2011 and based in Vancouver, British Columbia, Square One
Insurance offers the only à-la-carte home insurance policy in Canada.
That means you only pay for the protection you need. Square One is also
one of the few providers to automatically include earthquake and broad
water protection in its policy. No paying extra. For more information
about Square One, or to get an online quote, visit www.squareoneinsurance.ca.
SOURCE: Square One Insurance Services Inc.
For further information:
Jason Vander Zalm
Square One Insurance Services Inc.
Tel: 778.331.6933 ext 103