Earthquake coverage
Earthquake insurance in Ontario
Earthquake is one of the perils a standard home policy leaves out. Coverage is available, but as an optional add-on with its own rules — most notably a deductible calculated as a percentage of your coverage rather than a flat dollar amount. Here is how it works and who it is for.
Earthquake is an optional add-on
Across Canada, earthquake (or "earthquake shock") coverage is not included in a standard home policy — it is an endorsement you choose to add. It responds to damage caused by the shaking itself: structural damage to the dwelling and, depending on the endorsement, damage to your contents.
Because it is optional, whether to carry it is a judgment about your property’s location and your own tolerance for the risk. It is priced on that seismic exposure, so premiums vary widely between low-risk and higher-risk areas.
The percentage deductible
The feature that surprises most people is the deductible. Earthquake endorsements typically use a percentage deductible — a share of the coverage amount rather than a flat figure. So a policy with a large dwelling limit can carry a deductible in the thousands or tens of thousands of dollars before coverage responds.
That structure exists because a major earthquake is a rare but potentially catastrophic, widespread event. The percentage deductible keeps the coverage focused on serious losses. When weighing the endorsement, the deductible matters as much as the premium — both tell you what the coverage is really for.
Ontario’s seismic risk in context
Ontario’s earthquake risk is generally lower than British Columbia’s, which is where much of Canada’s seismic activity is concentrated. That is a real part of why many Ontario homeowners do not carry the endorsement.
It is not zero, though. The western Quebec and Ottawa-area zone, along the Ottawa and St. Lawrence river valleys, has measurable seismic activity, and eastern Ontario sits closer to it than the rest of the province. Location within Ontario is what makes the endorsement worth a closer look for some homeowners and not others.
Fire following an earthquake
One important distinction: fire is a standard covered peril, and fire that breaks out as a result of an earthquake is often addressed under that standard fire coverage rather than the earthquake endorsement. The endorsement itself is aimed at the shake damage.
The exact treatment depends on your policy wording, so if earthquake exposure is a concern, it is worth confirming with a licensed broker how both the shake damage and any resulting fire would be handled under your specific contract.
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Frequently asked questions
Does home insurance cover earthquakes?
Not by default. Earthquake coverage is an optional endorsement across Canada, added to a standard policy for an extra premium. Without it, damage from the shaking itself is generally not covered.
Is Ontario at risk of earthquakes?
Ontario’s seismic risk is generally lower than British Columbia’s, which is why many homeowners in the province skip the endorsement. It is not zero, though — the western Quebec and Ottawa-area zone along the Ottawa and St. Lawrence valleys carries measurable activity, so eastern Ontario has more exposure than most of the province.
Why is the earthquake deductible so high?
Earthquake endorsements typically use a percentage deductible — a share of your coverage amount rather than a flat dollar figure — so it can run into the thousands or more. The structure reflects that a major quake is a rare but potentially catastrophic event, keeping the coverage focused on serious losses.
Is fire after an earthquake covered?
Often yes, but under a different part of the policy. Fire is a standard covered peril, and fire that results from an earthquake is frequently handled under standard fire coverage, while the earthquake endorsement addresses the shake damage. Confirm the exact wording with your broker.