ANTHONY TILSNER
VANCOUVER ISLAND – Earthquakes differ from other natural disasters like hurricanes or floods, which have somewhat predictable patterns or seasons. Seismologists can identify fault lines and assess probabilities for certain regions, but the precise timing, location, and magnitude of earthquakes remain impossible to forecast. This uncertainty requires constant preparedness, both in terms of personal safety and financial planning, especially here on the coast of BC.
As seismic risks persist, earthquake insurance has become an important tool for financial protection. However, in recent years, both deductibles and premiums for this specialized coverage have increased steadily. This trend has left many business owners and homeowners weighing the value of maintaining or purchasing earthquake insurance, as the ever-rising cost can be a significant consideration.
Investing in earthquake-resistant construction and emergency readiness strategies, such as securing heavy furniture or maintaining emergency supplies, is important. Insurance provides a different kind of protection. Without it, individuals and families may face the daunting prospect of covering repair or rebuilding costs out of pocket. This can be overwhelming or even financially ruinous.
The financial impact of earthquakes can range from minor cosmetic damage to complete structural collapse. In the aftermath, property owners may be confronted with expenses that far exceed their savings. Insurance serves to buffer against these losses, offering policyholders the means to recover and rebuild.
Earthquake insurance coverage may include:
- Repair or rebuilding costs out of pocket
- Loss of business income
- Loss of contents
- Relocation expenses
- Rental/lease income for investment properties
The cost of earthquake insurance depends on a number of factors, such as your business’s risk exposure and the construction of your building. To help decide whether this coverage is right for you, look at your business as an investment and ask yourself what the impact of not having earthquake insurance would be. If you have questions, don’t hesitate to call 250-856-0062, 1-877-811-3644 (tollfree), or email commercialinsurance@cccu.ca. We can help you make an informed decision to help safeguard your future.
Anthony Tilsner is a Commercial Insurance Advisor with Coastal Community Insurance Services (2007) Ltd., an affiliate of Coastal Community Credit Union.
