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:
How Does Home Insurance in Calgary Work?
Home insurance in Calgary works by providing financial coverage if your home and its contents suffer damage from unforeseen events. If the unforeseen event is covered in your policy, you can make an insurance claim to receive monetary compensation. The same principle applies to tenant insurance and condo insurance, which do the same but for different dwelling types.
There are three types of home insurance coverage in Calgary:
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:
Who Provides Home Insurance Quotes in Calgary?
There are different ways that you can get a home insurance quote in Calgary. Here are the four providers that you can use or contact for home insurance rates:
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.
How Much Does Home Insurance in Calgary Usually Cost?
Home insurance in Calgary costs around $1,958 annually. 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.
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:
What Determines the Cost of Home Insurance in Calgary?
The cost of home insurance in Calgary varies depending on several considerations, such as your zip code, your property type, and even your credit score. Here are some of the different cost factors for home insurance in Calgary:
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 You Can Get Cheap Home Insurance in Calgary
If you’re trying to save money on your preferred home insurance coverage, here are some important steps to take:
FAQs About Home Insurance in Calgary
Is home insurance in Calgary mandatory?
No, home insurance in Calgary is not mandatory. However, you should still consider getting home insurance to cover your house and belongings. A home insurance policy can give you the funds you need to repair or rebuild your home after an insured event causes loss or damage.
What is not covered by a typical Calgary home insurance plan?
The following are typically not covered by a Calgary home insurance plan:
Flooding: Flooding is a separate add-on.
Earthquakes: This risk is typically not covered, but you may opt to get an earthquake risk add-on.
Wear and tear: Damage or destruction caused by improper home maintenance won’t be covered.
Tenant damage: You’ll need separate coverage if you plan to use your home for short-term rentals.
Insect damage: Most insurers consider this a preventable risk and won’t cover it.
Mortgage or property taxes: These expenses are excluded as they’re unrelated to your policy.
Vacant dwelling: Leaving your home vacant for an extended period may void your policy.
Mould: Only mould caused by an insured peril will be covered by your policy.
Criminal activities: Home insurance doesn’t cover damage due to criminal activity conducted in your home, such as fraud.
Home business activities: Home businesses need to get separate home-based business insurance.
Can you cancel home insurance in Calgary?
Yes, you can cancel home insurance in Calgary. Note that cancelling your home insurance before its expiry may cause you to incur penalties and cancellation charges. That said, switching to a more affordable home insurer can offset the costs of cancelling your old policy.
Check your policy’s terms and conditions first to find out how to cancel your policy and what financial consequences to expect. Most home insurance companies will need a written notice of cancellation either physically mailed or emailed to them to formally start the step.
What factors aren’t used to calculate Calgary home insurance rates?
These are some of the factors that companies typically won’t use to calculate Calgary home insurance rates:
– Your age
– Your sex
– Your race
– Occupation (unless you regularly work from home, as some insurers may increase your quotes)
Some factors you may never even have considered can impact your rates, such as your marital status and credit score. Talk to your insurance company to find out more about what can increase or decrease your insurance quotes.
How do Calgary home insurance claims work?
Here’s how Calgary home insurance claims generally work, step by step:
Report the damage or loss: Inform your insurer about the loss or damage to file your claims. Include all relevant evidence, such as detailed descriptions of the event, photographs, and videos.
Evaluation: An adjuster from your home insurer will schedule a visit to assess the extent and value of the damage or destruction.
Approval or denial: After evaluating your documents and inspecting the damage, your insurer will either approve or deny your claim. If approved, they will offer a settlement amount.
Claim resolution: You can accept your settlement or negotiate with your insurer. In some instances, you may also file a dispute with the Alberta Superintendent of Financial Institutions (ASFI).
Do Calgary real estate prices affect the cost of home insurance?
Yes, Calgary real estate prices affect the cost of home insurance. While real estate prices aren’t used as a factor for calculating your home insurance premiums, they may indirectly affect the cost of coverage because they affect the cost of rebuilding or repairing a home that’s been damaged or destroyed.
Because higher real estate prices make the cost of rebuilding higher, this affects the amount of coverage you’ll need in a home insurance policy. Consequently, higher real estate prices tend to increase home insurance costs.
Do I need home insurance in Calgary for Airbnb?
Yes, you need home insurance in Calgary if you plan to use your house for short-term rentals on Airbnb. Getting home insurance isn’t mandatory and Airbnb offers very limited host protection insurance.
For peace of mind, getting home insurance for short-term rentals can protect your home. Notify your insurer if you plan to use your home as an Airbnb to see how much additional protection will cost. Renting your home out without informing them may void your policy.
Are Calgary home insurance fees tax-deductible?
Generally, Calgary home insurance fees aren’t deductible for personal residences. However, there are some instances where your home insurance fees may be tax-deductible, such as if your home is a rental property or used for business purposes. Consult a tax professional to see if you’re eligible for any deductions connected to your Calgary home insurance fees.