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HOME : Just the FAQs Ma'amEarthquake Is Normally Not CoveredI live in a part of the country that is prone to earthquake. Therefore, my insurance broker advised me to buy earthquake insurance on my house. But the price is enough to shake anyone up! I'm wondering if I really need this extra coverage. Wouldn't my homeowners insurance cover me if an earthquake hit? No! If an earthquake damages your property, don't count on your homeowners insurance to pick up the pieces, so to speak. Suffering an earthquake is bad enough, but you'd be on even shakier ground if you didn't have adequate protection on your home. Anyone who lives near a fault line -- in British Columbia, the Ottawa Valley, and parts of Quebec, particularly around Montreal -- should consider buying earthquake coverage. Earthquake insurance generally covers loss or damage to your property caused by the actual shaking movement of the earth. Your ordinary homeowners policy, on the other hand, would likely not cover this peril. Damage caused by the shaking may be only part of the picture, though. If an earthquake is powerful enough to damage a building, it could also rupture a gas or water main. Escaping gas could ignite, causing a fire that might not be readily extinguished, especially if the water supply was affected. But because the shaking didn't directly cause the fire, any damage resulting from the latter would likely be covered under your regular homeowners policy. However, that may not always be the case, so check with your insurance provider to see if there are any special terms or conditions relating to earthquake and fire in your homeowners policy. Earthquake insurance doesn't come cheap, as you discovered. The price varies according to your geographic location and the construction of your house (generally, solid-brick buildings are less likely than wood-frame structures to withstand earthquake shock). Therefore, you may not pay the same price for your coverage as your neighbours do. There is also a fairly high deductible (the portion of the claim that you agree to pay) on earthquake coverage, compared with your regular homeowners insurance. But remember, insurance is designed to protect against serious loss or damage. Wouldn't you rather pay the price BEFORE disaster strikes? That way, if the earth moves, you'll be on solid ground -- at least as far as your insurance is concerned! Note: The preceding information is based on the Insurance Bureau of Canada's guideline wordings. Remember, policies vary, so when in doubt, Contact Us.
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