Is Earthquake Insurance Worth It in Canada?

When most people think of earthquake zones in Canada, the West Coast usually comes to mind. But the reality is that millions of Canadians live in regions with some level of seismic activity. 

However, many people don’t realize that standard homeowners, condo, or tenant insurance policies don’t actually cover earthquake damage, making this type of coverage far more relevant than many Canadians realize. 

In this guide, we’ll break down what earthquake insurance covers, how much it costs, and whether it’s worth it, plus how the risk changes across different parts of the country.

Key takeaways

Earthquake insurance is an optional add-on to your insurance policy that helps cover damages to your home in the event of an earthquake. It’s more worthwhile to have in higher-risk areas, like Coastal BC and along the St. Lawrence Valley in Ontario and Quebec. 

Is there earthquake insurance in Canada?

Yes, most major insurance providers in Canada offer earthquake coverage as an optional add-on to home, condo, and tenant insurance. It’s most relevant in higher-risk areas, such as coastal British Columbia and along the St. Lawrence Valley in Ontario and Quebec. 

This coverage comes at an additional cost, but it can save you from major out-of-pocket expenses. Even a moderate earthquake can cause cracked foundations, collapsed chimneys, or damage your belongings. In fact, according to Angi’s List in the US, the cost to repair earthquake damage to a home typically ranges from $5,000 to $25,000–sometimes more.  

What does earthquake insurance cover?

Earthquake insurance is an endorsement, meaning it’s an add-on to your existing home insurance policy that extends protection specifically for earthquake damage. Without it, most standard home insurance policies won’t cover losses caused by earthquakes.  Generally, earthquake insurance helps cover damages to:

• Your home’s physical structure (walls, foundation, windows, roof, etc.)
• Permanent fixtures (built-in cabinets, plumbing, electrical systems, etc.)
• Detached structures (garages, sheds, etc.)
• Personal belongings (furniture, electronics, clothing, appliances, etc.) 

It also includes additional living expenses coverage if your home becomes uninhabitable due to earthquake damage.  Coverage can also look a little different depending on your situation:

• Condo owners: Your condo corporation’s master policy usually covers the building structure and shared areas, while your personal policy protects what’s inside your unit. 
• Renters: Your landlord’s insurance typically covers the building itself, but your tenant insurance protects your personal belongings and pays for additional living expenses if the unit becomes uninhabitable. 

In short, earthquake insurance is designed to protect your property and financial stability after an earthquake, helping you get back on your feet faster.   

What is the deductible for earthquake insurance?

One of the biggest differences between earthquake insurance and standard home insurance is the deductible. Most home insurance policies have a flat deductible, like $500 or $1,000. Earthquake insurance, however, usually comes with a percentage-based deductible, which makes it much higher. 

According to the Government of Canada, earthquake insurance deductibles are typically between 5% to 20% of your coverage limit. That means the higher your coverage, the higher your deductible.  For example, if you have $100,000 in earthquake coverage and your deductible is 10%, you’d need to pay $10,000 out-of-pocket before you’re eligible for reimbursement. 

Get the best price on insurance year-after-year

Get a quote

Is earthquake insurance worth it?

Whether or not earthquake insurance is worth it depends on your situation. If you’re a homeowner or renter in a higher-risk area like Coastal BC or along the St. Lawrence Valley in Quebec and Ontario, earthquake insurance can provide valuable protection against costly damage. In other regions, it may still be worth considering depending on your home, financial situation, and personal risk tolerance.  Let’s take a closer look at how the risk and need for coverage vary across different regions of Canada.   

British Columbia

Though many are small and go unnoticed, British Columbia sees thousands of earthquakes each year, with roughly 50 being felt. The magnitude 7.7 Haida Gwaii earthquake in 2012 served as a reminder of British Columbia’s earthquake risk. In light of this, earthquake insurance is generally considered to be worth it, especially if you live in seismically active areas like Vancouver Island or the Lower Mainland.

• Level of seismic risk: Highest in Canada (Source)
• Number of Earthquake Reports for 2024: 43 (Source)
• Major seismic zones: Cascadia Subduction Zone, Queen Charlotte Fault (Source)
• Vulnerable regions: Vancouver Island, Haida Gwaii, Coastal British Columbia (Source)
• Vulnerable cities: Victoria, Nanaimo, Port-Hardy, Masset, Prince Rupert, Vancouver (Source)

Quebec

Quebec experiences hundreds of small earthquakes each year, most too weak to be felt. However, the province is part of the Western Quebec Seismic Zone and the Charlevoix Seismic Zone, both capable of producing damaging earthquakes. The 1732 Montreal earthquake and the 1925 Charlevoix earthquake (magnitude 6.2) are reminders that the region isn’t immune. Because the risk is concentrated along the St. Lawrence Valley, earthquake insurance can be a smart consideration, especially if you live near Gatineau, Montreal, or Quebec City.

• Level of seismic risk: Low (Source)
• Number of Earthquake Reports for 2024: 14 (Source)
• Major seismic zones: Charlevoix-Kamouraska, Western Quebec, Bas-Saint-Laurent and Côte-Nord (Source)
• Vulnerable regions: Along the St. Lawrence Valley, Eastern Quebec (Source) 
• Vulnerable cities: Montreal, Quebec City, Gatineau, Trois-Rivières (Source)

Ontario

Ontario isn’t usually the first place you might think of when it comes to earthquakes, but the Western Quebec Seismic Zone extends into parts of Eastern Ontario. Small earthquakes are recorded regularly, and stronger ones, like the 2010 magnitude 5.0 Ottawa earthquake, have caused minor damage. The earthquake risk in Ontario is relatively low, but in areas closer to Ottawa and the St. Lawrence Valley, earthquake insurance may still be worth considering.

• Level of seismic risk: Low (Source)
• Number of Earthquake Reports for 2024: 0 (Source)
• Major seismic zones: Western Quebec Seismic Zone (extends into Ontario) (Source)
• Vulnerable regions: Ottawa Valley, Eastern Ontario near Quebec border (Source) 
• Vulnerable cities: Ottawa, Cornwall, Hawkesbury (Source)

Atlantic Canada (Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador)

Atlantic Canada experiences earthquakes, although most are small and rarely cause significant damage. The region sits near the edge of the North American plate, and the Grand Banks earthquake of 1929 (magnitude 7.2) off Newfoundland’s coast triggered a deadly tsunami, highlighting that the risk is not zero. While earthquakes here are less frequent and often offshore, earthquake insurance might be worth considering, particularly in Newfoundland and New Brunswick.

• Level of seismic risk: Low to moderate (Source)
• Number of Earthquake Reports for 2024: 3 (Source)
• Major seismic zones: Grand Banks, Passamaquoddy Bay (Source)
• Vulnerable regions: Coastal Newfoundland, parts of New Brunswick (Source) 
• Vulnerable cities: St. John’s, Moncton, Fredericton, Halifax (Source)

The Prairies (Alberta, Saskatchewan, and Manitoba)

The Prairie provinces are among the least seismically active regions in Canada. While small earthquakes do occur, they are rare and usually too weak to be felt. Alberta has seen minor seismic activity, some of it linked to natural resource extraction, but the overall risk remains very low. For most in the Prairies, earthquake insurance is generally not necessary.

• Level of seismic risk: Very low (Source)
• Number of Earthquake Reports for 2024: 14 (Source)
• Major seismic zones: None significant (Source)
• Vulnerable regions: Isolated parts of Alberta (Source) 
• Vulnerable cities: Minimal, no major urban centres at significant risk (Source)

Yukon

The Yukon sits near the boundary between the Pacific and North American plates, making it one of the more seismically active parts of Canada outside B.C. Earthquakes are not uncommon, with occasional moderate events being felt in communities. While the population is more dispersed, residents in Whitehorse and surrounding areas may benefit from earthquake coverage, given the region’s geology.

• Level of seismic risk: High (Source)
• Number of Earthquake Reports for 2024: 8 (Source)
• Major seismic zones: Denali Fault, Tintina Trench (Source)
• Vulnerable regions: Southern and central Yukon (Source)
• Vulnerable cities: Whitehorse, Dawson City (Source)

Northwest Territories

Earthquakes in the Northwest Territories are quite rare, though the territory has experienced moderate seismic activity, especially in its western regions near the Yukon and the Mackenzie Mountains. Since the risk is considered low for most residents, earthquake insurance may be less worth it than it would be elsewhere. 

• Level of seismic risk: Low (Source)
• Number of Earthquake Reports for 2024: 12 (Source)
• Major seismic zones: Mackenzie Mountains area (Source)
• Vulnerable regions: Western NWT bordering Yukon (Source) 
• Vulnerable cities: Fort Simpson, Norman Wells (Source)

Nunavut

Nunavut is Canada’s least seismically active region. Earthquakes are extremely rare, and the risk to homes and communities is considered negligible. Because of this, earthquake insurance is generally considered unnecessary for residents of Nunavut.

• Level of seismic risk: Very low (Source)
• Number of Earthquake Reports for 2024: 2 (Source)
• Major seismic zones: None significant (Source)
• Vulnerable regions: None (Source) 
• Vulnerable cities: None (Source)