A standard home policy on the central Island covers fire, including wildfire, and usually the sudden escape of water from a burst pipe. It does not cover earthquake shaking, overland flooding or sewer backup unless you add them, and on most policies it does not cover storm surge at all.

What the policy costs turns on the house and where it stands: what it would take to rebuild, the age of its wiring, plumbing and roof, how far it sits from a hydrant, and whether it burns wood or once burned oil.

In the purchases we work on, the insurance quote is arranged while the offer is still subject to conditions, so a stove, a tank or an old roof comes up before the purchase is firm.

What does a standard policy leave out?

Earthquake, overland water and sewer backup are each sold separately. The Insurance Bureau of Canada says earthquake damage is not included in a standard home policy and can be bought as an optional add-on, and it names British Columbia, notably the southwest, among the regions of Canada most susceptible to earthquakes.

The Province's own guidance makes the same point for B.C.: coverage for earthquakes, flooding and overland water damage is usually optional. Fire, including wildfire, is a standard part of home insurance in the province, though the Province notes that insurers may temporarily stop selling new policies and add-ons in areas under imminent threat during a major wildfire.

  • Earthquake: optional, with a deductible worth asking about. Among the questions the Province suggests asking a broker is whether a high deductible in an earthquake zone can be lowered.
  • Sewer backup: not covered by a standard policy, offered as an option by most insurers, according to the IBC.
  • Overland flood: also optional, offered by many insurers for most homes and priced on risk, and commonly sold together with sewer backup.
  • Storm surge: flood damage from storm surge is typically not covered by most home policies, nor by an optional endorsement, the IBC says. On a low-lying waterfront lot, that is a question to put to the insurer early.

Does flood cover matter if the house is nowhere near a river?

It can. The IBC points out that a home away from any lake or river can still take on surface water or ground water, which is why overland and sewer backup cover are worth pricing on any lot. The same page suggests a backwater valve where the municipality recommends one, and notes that some insurers offer incentives for backwater valves and sump pumps.

Government help is not a substitute. The Province's Disaster Financial Assistance program covers uninsurable losses from a qualifying event, and insurable damage is not eligible. PreparedBC adds that it is not available if insurance was available and you did not take it out, and the program covers only a principal residence, so a seasonal or recreational property is not eligible.

The Province's hazard map shows what could occur near you, and PreparedBC points to the local government for more on its own area.

What happens with a wood stove?

Raise it with the insurer before the offer goes firm. The IBC's guide to how home insurance rates are set advises talking to your insurer before you buy a property with a wood stove, says the insurer may require an inspection, and says wood-burning appliances affect both the availability and the affordability of home insurance.

WETT certifies the professionals who inspect wood-burning systems, and describes a WETT inspection as an inspection of a solid-fuel-burning system by a WETT-certified professional for compliance with the applicable codes and standards, with a written report that carries the inspector's certification number. A visual inspection typically covers the appliance type, its markings, clearances and code compliance. Each insurer sets its own rule on how long it will accept a report, and not every insurer accepts one from a WETT candidate, so the insurer's requirements come first and the booking second.

What about an oil tank, or one that used to be there?

A tank raises two separate questions, one for the insurer and one for the purchase. On the insurance side, the IBC says that if an indoor tank leaks and damages the home, the damage is covered under most policies; if spilled fuel oil may migrate to a neighbouring property, the liability part of the policy typically responds; and some insurers offer optional cover for a spill outside that stays on your own property.

On the regulatory side, the Province's page on managing fuel tanks says there are no specific provincial regulations for petroleum storage tanks, that B.C. Fire Code requirements apply, and that owners should follow the codes of practice of the Canadian Council of Ministers of the Environment.

On the purchase, the real estate regulator's consumer guide to oil tanks says a tank that is leaking or causing damage may be a material latent defect, which a seller must disclose, and that an offer can carry subjects for a suspected tank, such as an inspection by an environmental engineer and a holdback for remediation. Inside the city, Nanaimo Fire Rescue holds limited permit records of tank installations and removals and will check a property if you email fire.info@nanaimo.ca with the address.

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What drives the price on the coast?

The house first, then where it stands. The IBC lists the factors insurers look at, and most of them can be checked before an offer:

  • Replacement cost. Size, construction and contents. The amount a policy insures the building for should match what it would cost to rebuild, which the IBC notes can differ from the market value.
  • Wiring. Insurers ask about knob-and-tube or aluminum wiring, fuses, and service under 100 amps, and may require an update or an electrician's inspection.
  • Plumbing. Galvanized steel or lead pipes are more likely to crack and leak, and upgrading to copper or plastic can lower the cost of insuring the house.
  • Roof. Insurers generally prefer a roof updated within the last 20 years, and a policy does not pay to replace a roof that has reached the end of its life.
  • Distance to a hydrant and a fire station. A property far from either may cost more to insure, which is the rural acreage question.
  • Use. A home business, a rental suite, a heritage designation, monitored alarms, and outbuildings such as a shop or a detached garage.
  • The neighbourhood's claims, and yours. Insurers track claims by neighbourhood, so an area with more severe weather claims can cost more, and a personal claims history counts too.

How is a strata unit or a seasonal property different?

A strata corporation's policy covers the building, and the IBC says it does not cover the owner's contents, improvements to the unit, or personal liability, which a unit owner's policy does. That policy can also carry loss assessment cover, which pays the owner's share of a large common property loss above the corporation's limit, up to a stated amount. The strata's insurance certificate and deductibles are covered in buying a strata in B.C..

A property that sits empty for part of the year is insured differently. The IBC says cover may be limited to named perils because of part-time occupancy, that all-risks cover may not be available, and that sewer backup is commonly excluded on secondary or seasonal properties.

Frequently asked questions

Is earthquake insurance included in home insurance in B.C.?

No. The Insurance Bureau of Canada says earthquake damage is not included in a standard home policy and can be bought as an optional add-on, and the Province's guidance says earthquake coverage is usually optional in B.C. Ask the insurer what the deductible is.

Does home insurance cover flooding on Vancouver Island?

Not on a standard policy. Overland flood and sewer backup are optional coverages, and flood damage from storm surge is typically not covered by most policies or by an optional endorsement, according to the Insurance Bureau of Canada.

Do I need a WETT inspection for a wood stove?

If the insurer asks for one. The Insurance Bureau of Canada says an insurer may require an inspection of a wood stove, and WETT says each insurer sets its own guidelines on how long it will accept a WETT report, so check with the insurer before you book.

Will an old oil tank affect my home insurance?

Ask the insurer before you buy. The Insurance Bureau of Canada says damage from a leaking indoor tank is covered under most policies and a spill reaching a neighbour typically falls under liability, while cover for an outdoor spill on your own property is optional with some insurers. A leaking tank may also be a material latent defect the seller must disclose, according to BCFSA.

Does government disaster assistance cover flood damage?

Only for losses that could not be insured. The Province's Disaster Financial Assistance program does not cover insurable damage, is not available if insurance was available and not taken out, and does not cover seasonal or recreational properties.

Settling the insurance before the offer goes firm

Insurance is one line in the full cost of a move, and the costs people forget sets out the rest, alongside the cost of living in Nanaimo and the wider picture on Moving to Nanaimo. Download your copy of the Moving to the Island set for the money side of the move in full. If a particular house has a stove, a tank or an older roof, book a call with Travis or Kiel to go through what to ask the insurer, and when.

Sources

All read on 24 October 2026, Pacific time. This post was last updated 24 October 2026.