How Does Home Insurance Work In Calgary?
When you get a home insurance quote in Calgary 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 | $1,956 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $389 |
| Coverage Total: | $2,345 |
*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 Calgary by Dwelling Type
Below is the average home insurance price in Calgary, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $2,345 |
| Semi-Detached | $2,157 |
| Freehold Townhouse | $2,017 |
Does Where You Live in Calgary Affect Your Home Insurance?
Where you live in Calgary 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.
The T2X postal code has the lowest average home insurance rates in the city, likely since it’s a fair distance away from the city centre. Meanwhile, T3A has the highest average home insurance rates in Calgary. T3A includes Edgemont and Varsity, which are safe and well-desired neighbourhoods, explaining its higher insurance costs.
How Calgary Home Insurance Rates Compare to Nearby Cities
Calgary has some of the higher home insurance rates in Southern Alberta, above Airdrie, Cochrane, and Strathmore, and comparable to Lethbridge.
| City | Average Annual Home Insurance Premium |
|---|---|
| Calgary | $2,345 |
| Airdrie | $1,897 |
| Cochrane | $1,521 |
| Strathmore | $1,724 |
| Brooks | $1,957 |
| Lethbridge | $2,333 |
How Calgary Home Insurance Rates Compare to Provincial Average
Home insurance in Calgary costs around $2,345 annually, higher than the provincial average. Home insurance premiums are affected by factors like your home’s age, roofing type, proximity to fire hydrants, and more.
Using your home as a place of business may also influence your home insurance rates. Using your home for business means more people coming in and out of your property, increasing your liability and risk of losing belongings.
Common Home Insurance Discounts in Calgary
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 Calgary:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $267 |
| Claims-Free Discount | 16.5% | $387 |
| Alarm System (Burglar) | 7.5% | $176 |
| Alarm System (Fire) | 5.0% | $117 |
| Membership Discount (CAA) | 10.0% | $235 |
| Non-Smoker Discount | 7.5% | $176 |
What Risks Affect Homeowners in Calgary?
Calgary is often exposed to extreme weather. Here are some common risk factors homeowners in Calgary should watch out for:
Probability of Significant Disasters in Calgary
Between June 19 and 28, 2013, southern Alberta’s costliest flood caused a massive evacuation in Calgary, with 75,000 residents forced out of certain neighborhoods.
The following MyChoice probability scores for Calgary 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 Calgary 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.
Housing Data in Calgary
As the largest city in Alberta and one of the largest cities in the country, Calgary offers lots of work opportunities. Whether you’re looking for work at one of the many companies based in Calgary or starting your own business, you’ll find fruitful employment in the city.
Economist Intelligence named Calgary as the number one city to live in Canada and the third-best city to live in worldwide. The report cited Calgary’s high-quality healthcare, vibrant culture, and excellent infrastructure as some of the reasons why Calgary is such a great place to live in.
Here’s another reason living in Calgary is great: it’s affordable for such a big city. The living cost in Calgary is 18.6% lower than in Toronto, which means you can save a lot of money. Homes are also cheaper in Calgary, with an average home price of $538,561 – that’s over $600,000 under Toronto’s average
Is living in Calgary right for you? Research can help you find the answer. To help you decide, here’s a look at Calgary’s key housing statistics from the 2021 Census of Population:
Homeownership Rate by Age in Calgary
It seems that the older population (55+) has the highest homeownership rate in Calgary, while more than two in four young adults (25-39) can afford to buy a house.
| Age Group | Homeownership Rate |
|---|---|
| 15 to 24 | 14.8% |
| 25 to 39 | 52.7% |
| 40 to 54 | 73.7% |
| 55 to 74 | 80.3% |
| 75 and over | 80.9% |
What Is Not Included in a Typical Home Insurance Policy?
Even if you’ve opted for a highly comprehensive home insurance policy, there are some risks that insurers explicitly don’t include as a covered peril. These are called “exclusions” by home insurers.
Here are the most common home insurance exclusions:
This is by no means an exclusive list of risks typically excluded from a home insurance policy in Calgary. Talk to your home insurance provider to see what’s covered by your policy in case of loss or damage.
Why Do I Need Home Insurance in Calgary?
There are many risks to your Calgary home. From flooding due to heavy rain to fires, unforeseen incidents can damage your home or its attached structures severely, which can take a lot of money to repair. Somebody can even get into an accident on your property, which might result in hefty legal and medical fees.
Unexpected expenses due to these incidents can stretch your finances thin. The good news is that home insurance can help. A home insurance policy can foot your home repair bills if a covered peril damages it. Additionally, it pays for the many costs associated with personal injury lawsuits.
With the many options for home insurance, which one is right for you? There’s no one “best” home insurance policy for everybody, so you need to learn more about home insurance in Calgary to make the right decisions.
You technically don’t need home insurance in Calgary, because it’s not a legal requirement for homeowners. However, you should still get a policy to protect your home as well as its contents. Here are three main reasons why having a home insurance policy is a good idea:
How You Can Get Cheap Home Insurance in Calgary
Looking to save money on your preferred home insurance coverage in Calgary? Visit our Alberta page for practical tips.