How does earthquake insurance work in Quebec?

Which regions of Quebec are most at risk of an earthquake? 

Quebec has several seismic risk zones, with risk levels varying by region. 

Climate change and changes in geological conditions increase the likelihood of more significant seismic events. The risk of a major earthquake, magnitude 7 or higher on the Richter scale, cannot be ruled out.  

What types of damage can an earthquake cause to your home? 

The Insurance Bureau of Canada (IBC) classifies earhquake-related damage under two broad categories:

• Direct damage caused by the tremor: cracks in walls and foundations, building collapse, structural deformation, landslide etc. 
• Indirect damage that occurs after the quake: fire(caused by a short circuit or chemicals, for example), explosion, or smoke 

The type of damage is crucial, because it directly affects which coveragemay provide compensation.  

Does my home insurance cover me if there’s an earthquake?

Yes and no. Indirect damage related to an earthquake, such as fire, smoke or explosion, is generally covered by your basic home insurance policy or all-risk insurance. 

But to be covered for physical damage caused directly by the tremor, you need an earthquake endorsement. 

What does an earthquake endorsement cover?

An earthquake endorsement supplements the home insurance you have to protect your home and property. It includes: 

• The building structure
• Personal property
• Additional living expenses
• Temporary accommodation if your home is uninhabitable

Exclusions 

“Earthquake insurance” doesn’t cover certain risks, for which you need other types of coverage:  

• Tsunamis
• Tidal waves
• Landslides or land movement not resulting from an earthquake
• Floods (podcast in French only)

Will an earthquake endorsement cover my vehicle?

No. Damage to your vehicle indirectly caused by an earthquake is covered under a separate part of your car insurance policy – Section B: Coverage for damage to insured vehicles. If you live in an at-risk area, talk to your agent. They can offer the right coverage for your needs. 

How much does an earthquake endorsement cost?

The price of the earthquake endorsement varies according to several factors: 

• Deductible: between 5% and 15% of the value of the coverage (e.g., $40,000$ for a house worth $400,000)
• Region and risk level
• Type of building and year of construction
• Insured value

Who should consider this coverage?

Homeowners, condo owners, and tenants can get insurance for earthquakes, which while rare, have costly consequences. At a time when the climate is changing and natural disasters are more frequent, an earthquake endorsement is coverage worth looking into. It not only covers your home, personal property, and finances, but it also provides peace of mind.  

How can you prevent or limit earthquake damage?

While preventing damage is never a guarantee, a few simple steps can help limit the effects of an earthquake: 

• Check that the structure is properly anchored
• Stabilize the chimney and water heater
• Keep the roof in good condition
• Securely attach furniture, shelves, bookcases, and anything hung on the wall

How can you protect yourself during an earthquake?

It’s important to know what to do in the event of an earthquake. Get ready by taking part in Quebec’s Great ShakeOut, an annual awareness exercise.  

Before an earthquake 

• Have an emergency plan for your family
• Put together an emergency kit at home

During an earthquake 

• Drop
• Take cover under a robust piece of furniture
• Hold on tightly

Stay away from doors, windows, tall pieces of furniture, and lighting. Outside, stay away from crowds and seek safe shelter. 

When the tremors have stopped 

The top priority is your safety and the safety of your family. Once you know everyone is safe: 

• Inspect the building before assessing the damage. When in doubt, evacuate and contact the authorities 
• Photograph the damage and quickly notify your insurer

_{(1) Source: Data from the Insurance Bureau of Canada (IBC).}