Most people don’t think about their insurance coverage until something goes wrong. That’s exactly when the myths catch up with you — at claim time, when it’s too late to fix a gap. Some of the most common beliefs BC residents hold about their insurance are either outdated, oversimplified, or flat-out wrong, and the consequences range from unexpected out-of-pocket costs to claims being denied entirely.
Here are seven insurance myths worth unlearning — before they cost you. For personalized guidance on your own coverage, talk to a Park Insurance broker.
Myth 1: My ICBC Coverage Handles Everything After an Accident
ICBC Autoplan provides the mandatory basic coverage required for every driver in British Columbia, but how that protection works today is often misunderstood.
With BC’s Enhanced Care model, the system operates on a no-fault basis. This means that if you’re injured in a crash in BC, your medical care, rehabilitation, and income support are handled through ICBC, regardless of who caused the accident. In most cases involving BC drivers, you won’t be suing or being sued for injury-related damages.
Where confusion comes in is assuming that this means everything is fully covered in every situation.
What Enhanced Care does not automatically include:
- Coverage for damage to your own vehicle (collision)
- Protection against non-collision events like theft, vandalism, or weather (comprehensive)
- Certain out-of-province liability exposures, where different legal systems apply
For example, if you’re driving outside of BC, such as in Alberta or the United States, liability coverage becomes much more important again, as those regions may still operate under at-fault systems.
The reality:
ICBC Autoplan is a strong foundation, and in many cases, it can cover your needs entirely. But depending on how and where you drive, additional coverage, whether through ICBC or a private insurer, may still be important to fully protect your vehicle and financial exposure.
The key is understanding how your coverage works within BC’s system and where gaps can appear, so you can make informed decisions with the help of a Park Insurance broker.
Myth 2: Home Insurance Covers Overland Flooding
This is one of the most misunderstood aspects of home insurance in British Columbia, especially for homeowners in areas like the Fraser Valley, coastal regions, and properties near rivers or drainage routes.
Standard home insurance policies typically do not include overland flood coverage by default. This refers to water entering your home due to rising rivers, heavy rainfall, or surface runoff.
However, this does not mean you’re unprotected.
Overland flood coverage is widely available as an add-on, and many homeowners already have it included in their policy. The key issue is that coverage can vary depending on your property’s location, risk level, and when the policy was set up. In higher-risk areas, limits, availability, or pricing may differ.
Events like the 2021 Abbotsford flooding highlighted how important it is to understand exactly what your policy includes, rather than assuming you’re covered.
It’s also important to distinguish sewer backup coverage, which protects against water entering your home through drains or plumbing systems. This is a separate endorsement and should be reviewed alongside flood protection.
The reality: Flood-related coverage is often available and commonly included, but it is not one-size-fits-all. The only way to know what you have and whether it’s sufficient is to review your policy with a Park Insurance broker.
Myth 3: Tenant Insurance Isn’t Worth It
Renters frequently skip tenant insurance on the assumption that their landlord’s policy will protect them. It won’t. A landlord’s policy covers the building structure — not your belongings, not your liability, and not your additional living expenses if you’re displaced after a fire or flood.
Tenant insurance in BC is relatively affordable, and it covers three things that can each individually run into the tens of thousands of dollars: your personal contents, your personal liability if someone is injured in your unit, and temporary accommodation costs if your rental becomes uninhabitable.
The reality: Your landlord’s insurance has nothing to do with you. Tenant insurance is one of the most cost-effective coverages available.
Myth 4: Earthquake Damage Is Covered Under My Home Insurance
British Columbia has the highest earthquake risk in Canada, yet many homeowners assume their standard home insurance policy includes seismic coverage. In most cases, it does not.
Earthquake coverage is available as an optional add-on and can be added to most policies. However, it is not always included automatically, and many homeowners either decline it or are unaware of how it works.
One of the biggest considerations is the deductible. Earthquake deductibles are typically much higher than standard claims and are calculated as a percentage of your home’s insured value. In practical terms, this means that for smaller or moderate earthquakes, many homeowners may not meet the deductible threshold required for a payout.
It’s also important to understand how claims are categorized. Damage directly caused by ground movement would fall under earthquake coverage, but secondary events like fires may be handled differently. For example, if a fire occurs after an earthquake, that loss may be covered under your standard fire coverage, not your earthquake policy.
The reality: Earthquake coverage is widely available in BC, but it is not one-size-fits-all. Between deductibles, coverage limits, and how claims are triggered, it’s something that needs to be carefully reviewed based on your property and risk tolerance.
Myth 5: My Home-Based Business Is Covered Under My Home Insurance
Running a business from home — whether it’s client consultations, product inventory, or professional services — introduces liability and property exposures that standard home insurance is not designed to cover. Most home policies explicitly exclude business-related claims, including damage to business equipment, liability arising from client visits, or loss of business income.
This gap catches many self-employed BC residents off guard, particularly those who transitioned to remote or home-based work and never updated their coverage.
The reality: If any part of your home is used for business purposes, tell your broker. The fix is usually straightforward — but only if the exposure is disclosed.
Myth 6: The More You Claim, the Better Value You’re Getting
Some policyholders believe they should file a claim whenever possible to get the most out of their premiums. In reality, this approach can create more risk than benefit over time.
Frequent small claims can lead to higher premiums at renewal and, in some cases, make it harder to maintain coverage. Insurers look at claims history closely, and multiple minor claims can signal increased risk.
Insurance is designed for meaningful, unexpected losses, not routine maintenance issues or smaller incidents that fall close to your deductible. In many cases, the cost of the claim may not be significantly higher than your deductible, making it less worthwhile to file.
This is why reviewing your deductible is important. A higher deductible can help reduce premiums, but it also means you should be prepared to handle smaller losses out of pocket.
The reality: Small claims are often not worth it, especially if they happen more than once. Being mindful about when you file a claim and reserving it for more significant losses helps protect your long-term insurability and keeps your premiums more stable.
Myth 7: My Coverage Limits Are Fine Because I Haven’t Changed Anything
“Set it and forget it” is one of the most common and costly habits when it comes to insurance.
Most home insurance policies in BC are designed to cover replacement cost, meaning the cost to rebuild your home or replace your belongings at today’s prices, not what you originally paid. The challenge is that those costs don’t stay the same.
Inflation continues to drive up the price of construction materials, labour, appliances, and everyday household items. What it cost to rebuild your home or replace your contents even a few years ago is likely much lower than it would be today.
On top of that, life changes add up. Renovations, new furniture, upgraded electronics, home office setups, and gifts all increase the total value of what you need to protect.
In a province like BC, where construction and replacement costs are already high, even small gaps can become significant in the event of a claim.
The reality: Your policy is built to reflect replacement costs, but those costs are constantly changing. Regularly reviewing your coverage ensures it keeps pace with inflation and your evolving lifestyle.
What Most BC Residents Get Wrong About Insurance
The common thread across all of these myths is assumption. Assuming coverage exists, assuming limits are sufficient, assuming nothing has changed. Insurance works best when it’s actively managed — not left on autopilot.
Not sure where your own coverage stands? A Park Insurance broker can walk you through it — no jargon, no pressure, just a clear picture of where you’re protected and where you might not be.
The right coverage isn’t about having the most policies — it’s about having the right ones, properly structured for your actual situation. At Park Insurance, we help BC residents cut through the noise and make sure their coverage does what they think it does.
