British Columbia brokers may be hoping clients are sufficiently shaken up to revisit their homeowner’s policies after a magnitude 6.7 earthquake struck off the northern coast of Vancouver Island last night.
Glass rattled, buildings swayed, but no damage was reported, as the U.S. Geological Survey reported that the epicentre was about 94 kilometres south of Port Hardy and struck at a depth of 11 kilometres.
Last night’s quake underlines recent studies that have shown there is another, potentially $75-billion, threat facing Vancouver. It is also highlights the urgency of broker efforts to ensure clients have sufficient coverage and have thrown off the complacency that's set in over the last decade of relative quiet.
“Insurers, governments and all Canadians have a responsibility to prepare,” Don Forgeron, president and CEO of the
Insurance Bureau of Canada told Insurance Business when the study was first released. “If a mega-earthquake should strike in a densely populated area, insurance alone will not pay for all the damage. Governments and consumers have a role to play.”
Following last night’s initial quake, three more earthquakes followed. The first was magnitude 5.0 and the next two both measured 4.2.
According to the AIR Worldwide study, which was released back in October, there is at least a 30 per cent chance that an earthquake strong enough to cause significant damage will strike the B.C. area in the next 50 years. Anticipated total direct and indirect losses have been forecast at $74.7 billion.
The study is the first scientific evaluation in two decades on earthquake threat. The earthquake model used by AIR Worldwide shows the damage that would be caused by a seismic event of 9.0 occurring in the Cascadia subduction zone at a depth of 11 kilometres, in the Pacific Ocean approximately 75 kilometres of the west coast of Vancouver Island, and 300 kilometres from downtown Vancouver.
