What Is Earthquake Insurance and When Is It Recommended?

Canada may not be the first place that comes to mind when thinking about earthquakes, but certain regions are more at risk than many realize. From the west coast’s active seismic zones to parts of Quebec and eastern Ontario, earthquakes pose a real threat that standard home insurance policies usually do not cover.

This matters when you consider the cost of rebuilding after a large-scale event. You might think about this the next time you review your home insurance or hear about a small tremor nearby.

What Earthquake Insurance Covers

Earthquake insurance is an optional add-on (endorsement) to your home, condo, or tenant insurance. It protects against damage caused directly by ground shaking, including:

Structural damage to your home
Covers cracks in the foundation, collapsed walls, roof separation, or total destruction.
Damage to your personal belongings
Reimburses you for broken furniture, electronics, and household items if shaken or fallen.
Additional living expenses
Pays for hotels, food, and temporary accommodations if your home is unsafe after a quake.

Covered Event	Is It Included in Standard Policy?	Covered With Earthquake Add-On?
Foundation cracks	No	Yes
Collapsed walls or chimneys	No	Yes
Furniture or valuables broken during quake	No	Yes
Temporary housing costs	No	Yes

Note: Earthquake coverage typically comes with a higher deductible than your standard policy—often between 5% and 20% of your home’s insured value. This means for a $500,000 home, your deductible could be $25,000 or more.

Where It’s Most Often Recommended

Earthquake insurance is strongly recommended if you live in or near:

British Columbia (especially Vancouver Island and Lower Mainland)
This region sits on a major fault line and experiences frequent seismic activity.
Parts of Quebec (notably around Montreal and Charlevoix)
Known for historical earthquakes, even if infrequent.
Eastern Ontario (including Ottawa)
Some areas have a documented history of moderate seismic activity.

Even in regions considered lower risk, one moderate quake could still lead to significant repair costs. Because home insurance excludes ground movement by default, you would be responsible for rebuilding on your own without this rider.

Why Coverage May Be Worth the Cost

While earthquake damage is rare compared to fire or flooding, when it does happen, it tends to be catastrophic. Entire structures may be unsafe or condemned, and recovery often takes months or longer. For homeowners without earthquake insurance, this means bearing the full cost of rebuilding and temporary relocation.

Tip: If you cannot afford to rebuild your home entirely out-of-pocket, earthquake insurance is worth considering—even in moderately risky areas.

Know Your Risk, Not Just Your Location

Earthquake risk is not only about geography. Soil type, building age, and structural materials also affect how vulnerable your home is. Homes with brick facades or built on fill tend to suffer more during seismic events.

Caution: Some insurers place limits on how much earthquake coverage is available or require that it be added when you first purchase your policy. Waiting until after a tremor or warning may limit your options or increase your premium.