Earthquake Insurance and Calculating the Earthquake Deductible

Strata corporations are not required to obtain earthquake insurance. That being said, purchasing a unit in a strata corporation that does not have earthquake insurance can pose significant risks, so it’s important to advise consumers accordingly.

It’s also important for your clients to be aware of how much they may be on the hook for, were an earthquake to happen and cause significant damage. By doing so, your clients will be able to make an informed decision on whether, or not, to obtain additional homeowner insurance, to mitigate their risks.

To calculate a strata lot’s earthquake deductible:

1. You need the following info:

  • The strata’s current insurance policy, and from there:

    • The Insured Value of the strata corporation.

    • The Earthquake Deductible, shown as a percentage (e.g. 15%)

  • The strata lot’s Unit Entitlement. To calculate this, you’ll need:

    • The Form V - Schedule of Unit Entitlement.

      (filed with the Land Title Office, or if the strata was built pre-2000, this will be part of the Strata Plan)


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