One of the challenges of homeownership in Alberta is navigating its insurance landscape and choosing the best policy for your needs. Home insurance in Alberta can be confusing due to the many insurance options, risk factors, and insurers that complicate decisions.
Learn all about the ins and outs of Alberta home insurance. Discover what types of coverages are available, do’s and don’ts to lower your insurance rates, and more.
How Does Home Insurance Work In Alberta?
When you get a home insurance quote in Alberta with MyChoice, you’re receiving a comprehensive policy that goes beyond just the basics — including Guaranteed Replacement Cost, which ensures your home will be rebuilt to its original condition even if the cost exceeds your dwelling coverage limit.
Your quote is made up of two main pillars: Base Residence / Dwelling (covering your home, contents, liability, and standard perils) and Enhanced Water Protection (covering floods, sewer backup, and groundwater seepage). Together, they form a complete protection package for your property and belongings.
| Coverage Type | What’s Included? | Average Annual Home Insurance Premium |
|---|---|---|
| Base Residence / Dwelling | – Dwelling Coverage – Outbuildings (detached structures) – Contents – Personal Liability – Voluntary Medical Payments – Voluntary Property Damage – Basic Water Damage | $1,742 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $347 |
| Coverage Total: | $2,089 |
*A comprehensive home insurance policy protects your property and belongings against all perils except those specifically excluded by the policy. This typically includes: fire and smoke damage, wind and hail damage, lightning strikes, burst pipes (depending on the situation), falling objects (like trees or branches), theft and burglaries, and vandalism.
Base Residence / Dwelling Coverages:
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Dwelling Coverage | Covers the cost to rebuild your home after insured damage. | $1,000,000 |
| Outbuildings (detached structures) | Covers the cost to rebuild the detached structures (i.e. garages, sheds, fences). | $150,000 |
| Contents | Protects your belongings from damage or loss due to covered perils. | $750,000 |
| Personal Liability | Legal & medical costs if someone sues you for injury/property damage. | $1,000,000 |
| Voluntary Medical Payments | Pays limited medical expenses if someone is accidentally injured on your property, regardless of fault | $4,500 |
| Voluntary Property Damage | Covers small amounts for accidental damage you cause to someone else’s property (or damage caused by a minor in your care | $1,500 |
| Basic Water Damage | Protects against sudden and accidental internal water damage (e.g., burst pipes or overflowing appliances | $1,000,000 |
*Please note that the average coverage limits in the tables above and below are based on the dwelling coverage of $1 million and can vary by house and carrier.
Enhanced Water Protection:
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Sewer Backup Endorsement | Pays for damage caused by sewage or septic systems backing up into the home. | $100,000 |
| Ground Water Endorsement | Adds protection against damage from ground‑water seepage, which is not covered by standard policies. | $250,000 |
| Overland Water Endorsement | Covers damage from freshwater entering your home from rivers, lakes or heavy rainfall. This is typically optional and recommended for homes in flood‑prone areas. | $250,000 |
| Broad Water Damage Endorsement | A catch‑all rider that may combine overland water, sewer‑backup and ground‑water coverage and may also include protection for seepage or ice‑damming (depending on the insurer) | $250,000 |
Home Insurance Price in Alberta by Dwelling Type
Below is the average home insurance price in Alberta, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $2,089 |
| Semi-Detached | $1,922 |
| Freehold Townhouse | $1,797 |
Does Where You Live in Alberta Affect Your Home Insurance?
Where you live in Alberta affects your home insurance. Living in an area known for severe weather events, thefts, or other perils increases your risk, making you more likely to file insurance claims. This leads to insurers giving you higher home insurance quotes than similar homes in safer areas.
For instance, a home in a flood-prone area might land higher insurance rates than a comparable home in an area where flooding is uncommon.
Most Expensive Cities to Insure a Home in Alberta
Where you live in Alberta affects your home insurance. Living in an area known for severe weather events, thefts, or other perils increases your risk, making you more likely to file insurance claims. This leads to insurers giving you higher home insurance quotes than similar homes in safer areas.
| City | Average Annual Home Insurance Premium |
|---|---|
| Medicine Hat | $3,875 |
| Fort McMurray | $3,167 |
| Calgary | $2,345 |
| Lethbridge | $2,333 |
| Brooks | $1,957 |
Least Expensive Cities to Insure a Home in Alberta
Below are some of the cheapest cities in Alberta for home insurance.
| City | Average Annual Home Insurance Premium |
|---|---|
| Sherwood Park | $1,450 |
| Spruce Grove | $1,513 |
| Cochrane | $1,521 |
| Strathmore | $1,724 |
| Edmonton | $1,725 |
Common Home Insurance Discounts in Alberta
Certain insurers offer home insurance discounts that can significantly reduce your premium — sometimes by up to 20% when combined. Please note that these discounts depend on your property type, condition, the insurer and even external conditions like natural disasters or crime rates in your specific area. Talk to your broker or insurer to learn more about what discounts they offer in your area.
Here’s a look at the most common discounts you can get on home insurance in Alberta:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $238 |
| Claims-Free Discount | 16.5% | $345 |
| Alarm System (Burglar) | 7.5% | $157 |
| Alarm System (Fire) | 5.0% | $104 |
| Membership Discount (CAA) | 10.0% | $209 |
| Non-Smoker Discount | 7.5% | $157 |
Common Risk Factors for Homeowners in Alberta
Alberta is often exposed to extreme weather. Here are some common risk factors homeowners in Alberta should watch out for:
Probability of Significant Disasters in Alberta
On April 23, 2020, the Peace River near Fort Vermilion jammed with ice, causing floods that damaged roads and forced roughly 450 people to evacuate.
The following MyChoice probability scores for Alberta are based on historical data from the Canadian Disaster Database (CDD), which has tracked major disasters in Canada since 1950. These scores represent the relative likelihood that each type of significant event could occur at least once in Alberta over the next decade. The comparison is made against both other regions in Canada and other types of events, helping illustrate where the greatest risks to homeowners may lie.
According to the CDD, an event is classified as significant if it results in 10 or more deaths, 100 or more people affected (injured, evacuated, or left homeless), an appeal for national or international assistance, historical importance, or severe damage that prevents a community from recovering on its own.
Alberta Home Insurance Trends
With some exceptions, home insurance premiums in Alberta are always on the rise. The most notable rate jump happened between 2020 and 2021 when insurance premiums rose by 23.83%.
A major reason for rising home insurance rates is the COVID-19 pandemic. With more people staying at home, the risk of perils like house fires increased, leading to more insurance claims. In turn, more insurance claims mean insurers will raise their insurance premiums.
Homeowners were more likely to add major home improvements during the pandemic because they spent more time at home, increasing their home’s total value. This means their insurance rates were also adjusted to be higher, reflecting their home’s increased value.
The other common thread for yearly rate hikes is that homes age. As homes age, they’re more prone to issues like burst pipes, leaky roofs, and electrical fires, leading to more insurance claims and raised insurance rates.
Housing Data in Alberta
What does the housing landscape in Alberta look like? You can find answers in the 2021 Census of Population. Here’s a quick overview:
FAQs About Home Insurance in Alberta
How much is home insurance in Alberta?
The average cost of home insurance in Alberta is about $2,089 annually depending on the type of dwelling, location, and other factors. Home insurance costs differ between home insurance providers. Note that several considerations can increase or decrease the cost of your Alberta home insurance, such as your home’s value and the property’s condition.
For a better overview of the cost of home insurance in Alberta, talk to an insurance broker or look up quotes on MyChoice.
Is home insurance mandatory in Alberta?
No, home insurance isn’t mandatory in Alberta. However, if you take out a mortgage on your home, your lender may require you to get coverage as a condition of getting a loan.
It’s also highly recommended that you get home insurance even if it’s not mandatory, so you can protect your house and personal property in case of unforeseen events like fires and hailstorms.
Do I need home construction insurance in Alberta for my renovation?
Yes, if you’re planning a major home construction or renovation project in Alberta, home construction insurance will protect you and your home during the process.
Also known as builder’s risk insurance, home construction insurance provides coverage in the event of damage or loss to your home and construction materials during the construction process. Some companies that offer this policy type even have liability coverage in case someone gets injured on your property during construction.
What is the home insurance claims process in Alberta?
The home insurance claims process in Alberta varies between insurers, but it generally consists of the following steps:
Report the claim: Contact your insurer and inform them about the damage or loss, including relevant details and evidence like videos or photos.
Claim evaluation: Your insurer will assign an adjuster, who will schedule an assessment of the value of any loss or damage.
Approval or denial: After the home inspection and evaluating your documentation, your insurer will either deny your claim or approve it, offering a settlement for repairs or replacement of damaged property.
Claim resolution: If you accept the offer, the payment will be made. If not, you can negotiate with your insurer or file a dispute with the Financial Services Regulatory Authority of Alberta (FSRA).
Can you cancel home insurance in Alberta?
Yes, you can cancel your home insurance policy in Alberta. The process may vary depending on your insurer and policy terms.
Generally, you’ll need to contact your insurance provider to let them know. Some insurers may require written notice of cancellation by mail or email.
Keep in mind that if you cancel your policy before its expiry date, you may be subject to penalties or cancellation fees.
Do I need home insurance for Airbnb in Alberta?
Yes, you may need home insurance for Airbnb in Alberta. While Airbnb has some host protection insurance, its coverage is limited and may not cover all types of liabilities or damages if you’re using your home for short-term rentals. Having a home insurance policy can provide additional protection and peace of mind.
Note that renting out your property as an Airbnb without telling your insurer may void your policy, and not all home insurance policies include coverage for short-term rentals. Check with your home insurance company to see if your policy has this protection or if you need to get additional coverage.
I have a vacation home in another city in Alberta. Can I insure that home too even if I don’t always live there?
Yes, you can insure your vacation home in another city in Alberta even if you don’t always live there. There are insurance policies specially tailored to cover seasonal or vacation homes to protect your property, belongings, and other liabilities from damage or loss.
Typically, these policies offer coverage for damages due to risks like fire, theft, and water damage. They may also have coverage for additional situations such as temporary living expenses if a covered risk makes your vacation home uninhabitable.
Home insurance companies have different requirements and limitations for vacation home insurance. In some cases, you may be required to take out additional coverage or accept different terms and conditions.
Is fire insurance mandatory in Alberta?
No, fire insurance is not mandatory in Alberta. However, it’s highly recommended that property owners get it to cover damages or loss to their property caused by fire, smoke, and other related perils.
Note that some Alberta mortgage lenders may require borrowers to have fire insurance coverage as a loan condition. This is because the property is collateral for the loan, and the mortgage lender may require coverage to protect the property from loss or damage.
Can I bundle home insurance with auto insurance in Alberta?
Yes, you can bundle home insurance with auto insurance in Alberta. Insurance companies typically offer bundled packages, and getting one can lead to big cost savings. It can also be more convenient for managing your insurance policies and premium payments, so you should compare bundles between insurers to see what discounts and levels of coverage they offer.
It’s my first time owning a house in Alberta. What type of home insurance should I get?
Before choosing a home insurance policy, first-time homeowners should consider the following factors:
– Financial capability
– Risk of exposure to specific risks in their area, such as flooding or earthquakes
– Home value and condition
If you’re on a low budget and live in an area that isn’t prone to natural disasters or crime, a basic policy may be enough for your needs. But if you want to cover all your bases, comprehensive home insurance will help you rest easy.
Talk to your insurance provider to find the best option for your budget and the coverage you need.
Who has the best home insurance rates in Alberta?
There’s no definitive company that offers the “best” home insurance rates in Alberta. This is because different providers will have their own processes for assessing the cost of providing coverage, so premiums vary from company to company for the same homeowner-applicant.
To find the best Alberta home insurance rates, compare offers through MyChoice’s home insurance calculator. We can help you find the most affordable options on the market.
Will I be charged if I switch home insurance providers in Alberta?
Yes, you may be charged if you switch home insurance providers in Alberta. Depending on the terms of your current policy, your provider may charge a fee for cancelling your policy before its expiration, while others don’t. Review your policy and talk to your provider to prepare for potential penalties.
What companies offer high-risk home insurance in Alberta?
Most insurance companies in Alberta offer high-risk home insurance. However, the rates that they’ll present will vary depending on their assessed risk of insuring your property in your area, as well as the factors that make you “high-risk”.
High-risk home insurance can be much more expensive than a standard policy, so compare rates through MyChoice to find affordable coverage for your home.
What is a home insurance peril?
A home insurance peril is a risk or event that may cause damage or loss to your home, covered by your home insurance policy. Examples of perils typically covered by standard home insurance policies in Alberta are:
– Hail and ice damage
– Fire and smoke
– Damage from lightning strikes
– Theft
– Vandalism
Do I need home insurance before closing in Alberta?
You need home insurance before closing in Alberta if your mortgage lender requires it. Lenders require you to get home insurance because they have a stake in your property as well.
What factors aren’t used to calculate Alberta home insurance rates?
Factors that aren’t used to calculate Alberta home insurance rates include:
– Disability
– Marital status
– Political affiliation
– Race
– Religion
– Sexual orientation and gender
How is home insurance regulated in Alberta?
Home insurance in Alberta is regulated by the Superintendent of Insurance of the Alberta Treasury Board and Finance.