Do You Have Adequate Earthquake Coverage?

Earthquake CoverageHeightened levels of seismic activity off Canada's West Coast are an important reminder to homeowners and tenants of how vital it is to have earthquake insurance to protect your largest investment and the contents inside.

It's best to purchase insurance sooner rather than later. Did you know that insurance companies can refuse to sell earthquake coverage at a point where they believe the risk of a major event is high or imminent? If "the Big One" does strike and you find yourself uninsured, you may not qualify for any government disaster assistance that's offered.

Making Earthquake Coverage Affordable

Many homeowners who already have standard earthquake coverage are not aware that it often comes with a very expensive deductible.  For instance, a property worth $600,000 typically has a deductible of 10%, which can translate to $60,000!

The deductible for the house is not the only one to apply; if you add the 10% deductible for contents and outbuildings you get the following:

  • Contents coverage at $480,000 makes the deductible $48,000;
  • Outbuilding coverage at $60,000 makes the deductible $6,000;
  • The total deductible for everything including the building is now $114,000.

But there is a solution. Some providers offer Earthquake Deductible Buy-Down Insurance that can slash your deductible from $100,000 or more down to about $2,500!

Earthquake Deductible Buy-Down Insurance also includes:

  • Affordable premiums;
  • Flexibility that enables you to purchase coverage to reduce the deductible up to a maximum of $500,000, or for only a specific percentage of the deductible.

Home insurance is a key requirement for your mortgage. The Auxilium Team is happy to provide you with a referral to our trusted partners for a consultation and quote.


Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.