Did you buy Earthquake Insurance?

(September 10, 2011 )

While the recent earthquake on Friday did not seem to cause major damages, it is a reminder for home owners in Vancouver that we should be covered for this potential problem.  Damage from earthquake results from (1) ground shaking and (2) fire ignited from the quake.  It is easy to envision the problems following an earthquake when we have split coverage.

Fire protection is standard for home insurance, but earthquake coverage is purchase seperately, and most people opt out of this coverage.  Where it is not clear the damage is done by the quake or fire, insurance claims may end up in court.  Following a wide spread earthquake, the sheer volume of claims will put enmorous stress on the courts, and customers may have to wait a long time and pay large legal fees to recoup their losses.  Having both coverages will minimize disputes and ease the process.