Earthquake Deductible Buy Back Insurance
Did you know that earthquake deductibles can be as high as 15% of your property's value? With InsureBC's earthquake deductible insurance, you can be prepared for anything Mother Nature throws your way. Our coverage is designed to handle the unexpected and keep your finances secure.
Earthquake Deductible Buy-Back Insurance
There are nearly 5,000 recorded earthquakes in Canada each year. According to the Insurance Bureau of Canada, there is a 30% chance that the big one will hit somewhere in Canada within the next 50 years, most likely along the west coast. In its simplest form, Earthquake insurance in Canada covers the loss or damage caused to the property and its contents caused by the shaking of the earth. Earthquake coverage may be purchased separately as an add-on to your home, or condo policy, and it is subject to a higher deductible than coverage for other items.
Has Your Earthquake Deductible Increased?
Did you know that in the event of an Earthquake, your Earthquake Deductible could be up to 15% of the value of your home or condo? Depending on that value, it could cost you $50,000, $80,000 or even more to cover earthquake damage. And you would be responsible for that entire amount.
We are proud to be one of the few brokers in BC to offer Earthquake Deductible Buy-Back Coverage which enables you to ‘buy down’ your Earthquake deductible, in the event of a major earthquake.
How Does Earthquake Deductible Buy Back Coverage Work?
This unique coverage is available to everyone who owns their own property. In order to qualify for this specialized coverage, clients must carry Earthquake coverage on their primary condo or home insurance policy. We have made this process extremely simple. All you need to do is complete the below form to obtain your quote today.
Does earthquake insurance also cover tsunami damage? Since most Canadian insurance companies do not offer it, it’s a question best suited for one of our licensed professionals. But, since the earthquake deductible is often higher than many people can afford, InsureBC has come up with a product that allows you to buy down your Earthquake deductible.
FAQ
What is the “Communicable Disease Endorsement” on the policy mean?
Every Lloyd’s policy has the communicable disease endorsement on it now. It basically means we willnot be paying for any damage caused or created by communicable diseases, such as COVID-19. It’shighly irrelevant for the earthquake deductible policy, but we are still required to include it on thepolicy.
What does it mean on the policy when it says “THIS POLICY CONTAINS A CLAUSE WHICH MAY LIMIT THE AMOUNT PAYABLE”?
- As this clause is standard on every insurance policy, we encourage you to read the wordings. Please letus know if you require a copy of the wordings.
- For this policy, it means InsureBC is always the last to pay. After all the other policy limits have beenexhausted is when this one would be applied.
- The deductible is another clause that limits the amount payable.
How is “each and every occurrence” defined with respect to the $5,000 deductible?
Under the definition each and every occurrence would include tremors within 72 hours of theearthquake. This is similar to other earthquake policies.
Is it possible to backdate policies?
No, it is not. Please ensure you submit your applications in a timely manner. If you cannot get a signedapplication from the client, you can submit the unsigned application for binding in the meantime. Signedapplications just need to be submitted within 60 days.
Do you provide coverage for commercial policies?
The intent of the InsureBC EQDB Deductible program is to provide options for residential and small commercial clients to finance their Earthquake risk. If you are unsure if your client would be eligible, please send a completed application to [email protected] and ask them to review the request. We will advise if they are a fit for the program.
Can policies be issued under a company name?
Yes, they can.
How are claims reported, should that become necessary?
The policy itself will list all claim details on it. All claims would be reported directly to: [email protected]
Are the policies Agency or Direct Bill? How is payment remitted?
They are Agency Bill. Our Accounting Team would send your office a monthly bill.
What if the client has a claim and property was vacant?
If there is an earthquake and the base policy pays out and the insured pays our deductible then ourpolicy will pay out. The fact that it is vacant and there has a claim is not pertinent; the key is the primarypolicy has to pay out first and we (InsureBC) are given the proof of payment.
Do we prorate policies to match the underling policy?
Yes, We usually only prorate once as a one-time exception to match the underlying policy and proraterequests need to go through our team.
Do you offer limits other than the ones indicated on the application?
- No, the amounts on the application are the amounts we are authorized through to bind. (e.g. 75k is noton the list – you can choose either $50k or $100k.). There is no customization and no stacking.
- Coverage over $500k is not available at this time, even on request.
Property manager of a condo is looking for a strata renewal. Are we able to offer coverage to the unit owners through the property manager?
This product is not intended for commercial strata. Individual owners of units with strata can purchase the EQBB insurance so long as they have underlying coverage, but we don’t offer coverage for commercial strata.The Strata can offer the application to the unit owners and the individual owners can apply directly. This is a per unit policy.
Can we add an insure to an existing policy?
Yes, we require the copy of underlying insurance or land title to process.
Can the coverage limit be increased or decreased mid-term?
- Yes, we can increase mid-term. Please send your request to: [email protected]
- For decreases, this is subject to approval and must be submitted with the underlying policy OR signedacknowledgement of policy change from the client.
Can we transfer the policy to a new risk location if client moves mid-term?
Yes, we can definitely transfer the policy, so long as they still meet all the underwriting requirementsand that information is provided in writing. Please email [email protected] with the followinginformation:
- What date the change is effective.
- New address.
- Year Built.
- Construction Type (from drop down menu on app).
- Primary Policy Type (from drop down menu on app).
- Fire Protection (from drop down menu on app).
How many locations/units can I put on the policy?
One policy per location/unit/address. This applies even if multiple units/locations/addresses are listedon the underlying policy.
What happens if the client does not purchase enough coverage?
They would be responsible for our $5k deductible plus any deductible not covered under their primarypolicy. If they did not purchase enough to cover the full deductible amount on their primary policy, theywill only be reimbursed up to the amount they purchased through InsureBC, less our deductible.
- For example, if they have a $76k deductible, they can choose to over-insure at $100k or underinsure at $50k.
- If opting for less coverage, they would be required to pay our $5k deductible + any amount notcovered under our policy.
- If opting for extra coverage, they would just be responsible for our $5k deductible.
What happens in the event of an earthquake claim on a non-strata property?
- Client pays deductible on primary policy.
- Primary policy pays out.o Proof is provided to InsureBC that primary policy paid out.
- Our policy will reimburse the deductible from primary policy.
- Our policy will pay the remainder, less the $5k deductible, as long as they purchased enough coverage.
- If they did not purchase enough coverage, they would be responsible for the $5k deductible,plus any amount not covered under our policy.
Does the insured only pay 1 x $5000 deductible for all coverage they need to claim under their primary earthquake coverage for EQ Building & EQ Content?
Yes, so long as they purchased enough coverage to cover the entire deductible.
If we have a condo that has damage to their contents and their unit improvements and also receives a strata deductible assessment for damage to common property at the same time, would there be 2 x $5,000.00 deductibles applied?
When a condo owner buys Earthquake Deductible Buyback coverage, it covers the Assessment that theStrata Corporation will levy and also the deductible they face under their condo owner's policy.
First, the earthquake policy the insured has on their own condo pays for the damage to their insured contents, less the amount of their deductible.
Second, our buyback policy reimburses them for that deductible, and also pays the Assessment Amount the Strata levies against them, less the $5,000 deductible on our policy.One deductible will apply per loss. These would be considered one loss if they originated from the same earthquake.
How much is commission for brokers?
Commission is 15%.
Do individuals living outside of Canada qualify for the coverage?
No. The insured must be domiciled in Canada, and the risk location must be in BC.
Looking to File a Claim?
Our dedicated claims department is committed to making the claims process as smooth and stress-free as possible. Whether you need to file a claim for your home, vehicle, or business, we have the expertise to guide you through the process.