|
|
HOME : Just the FAQs Ma'amEarthquake Insurance - Who Needs It?I live in a part of the country that could be prone to earthquake. However, I rent an apartment, so I figure the landlord's insurance will kick in if the earth moves and the building is damaged. Am I right? This may shake you up a bit, but tenants in quake zones can suffer damage that won't be covered by the landlord's insurance. If, for example, the ceiling of your rental unit collapsed on top of your new set of living room furniture, that damage would not be covered - not even by your own tenants package policy. Even though renters don't need to insure the building itself, they still need to protect the contents of their units against quake damage. While your tenants policy would likely cover some damage that may be caused by an earthquake - like a fire or explosion resulting from ruptured fuel lines or electrical short circuits - it does not cover damage caused by the actual shock itself. If, on the other hand, you were to carry special coverage for earthquake, you'd be on solid ground. In that case, you could claim for any damage caused by the quake - including damage from all aftershocks within a specified period of time (usually about a week) following the initial shock - less the earthquake deductible. And if the apartment were so badly damaged that you had to move out - perhaps to a location a considerable distance away - while repairs were being made, this insurance would also cover any additional living expenses that you had to pay during that time. Earthquake insurance is normally bought as an extension to your homeowners or tenants package, rather than as a standalone policy. If you don't already have this coverage, but want to purchase it, it's best to add it to your existing policy immediately. You may want to shop around prior to renewing your coverage, but at least you will have it in place. When shopping, compare the premiums, limitations, and deductibles. Because it is an add-on to your home insurance, look at the complete package - not just the earthquake coverage. And since your shopping spree could result in you switching insurance providers (unless you're a first-time buyer), the best time to do so is at renewal, so you don't pay a penalty for cancelling your existing policy before it comes due. Anyone who lives near a fault line - and that includes parts of British Columbia, the Ottawa Valley, and parts of Quebec, particularly around Montreal - should consider this coverage. But earthquake activity is not limited to those areas; Cornwall, Ont., and the Miramichi region of New Brunswick, not normally considered hot spots, make the list of the top 15 quake sites of the past century in Canada. So most of us are, to some degree, at risk. But with the right coverage, those shocks, should they ever strike your
neighbourhood, will be much easier to absorb.
|
