Average House Insurance Cost in Alberta: 2024

As a homeowner, you won’t be investing in home insurance out of compulsion, as you do in the case of your automobile insurance. Securing your home is rather a priority, and you wouldn’t like to risk your assets. Besides, you need to shell out the premiums for property insurance if you are looking for home loans or mortgages.

Comparing trends, you might find house insurance premiums in 2024 stinging your pockets. In Alberta, property insurance costs a bit more than many other places in Canada. That said, you might be keen to get an exact idea of the overall expenses on house insurance. In this article, the insurance experts at Surex will brief you about average house insurance cost Alberta.

Average house insurance cost Alberta — how much does it cost per year?

When it comes to average insurance cost Alberta is among the highest in the nation. The average home insurance cost Alberta is around $1,000.

This is higher than the average home insurance expenses in Canada, which stands at $960 annually.

However, average home insurance cost Alberta are not the highest among all the provinces. For instance, you need to shell out around $1,250 a year in Ontario. On the other hand, the annual house insurance premiums in British Columbia and Prince Edward Island are around $924 and $870, respectively.

People often wonder why the premiums differ to such an extent in different provinces. Reputed insurers consider the risk profile of their customers residing in different provinces before calculating their premiums. In Alberta, the premiums are expensive as the properties are more susceptible to perils. However, you can shop around or consult one of the insurance experts to buy an affordable package for your property.

Why is average house insurance cost Alberta high?

Some of the factors that determine your premiums include your demographics, scope of coverage, and particulars about your dwelling. The premiums would be higher if the estimated expenses to rebuild your property is high. Certain risk factors are specific to your location, capable of inflicting weather-oriented damage to your property.

In Alberta, the weather and natural conditions are more adverse than in most other provinces in Canada. The Alberta Floods of 2013 and Fort McMurray Wildfires of 2016 have been two of the greatest natural disasters in the province in the last decade. Naturally, insurers would consider homes in Alberta susceptible to greater risks. As a result, property owners need to shell out higher insurance premiums in this province.

Moreover, several places in Alberta have witnessed adverse weather conditions like hailstorms, rain, and thunderstorms, that even led to the evacuation of the masses over the last decade. Some of these places include Calgary, Red Deer, Slave Lake, and Pine Lake.

Naturally, when insurers insure your home in Alberta, they cover the property against such disasters. Considering the greater risk potential of your home in Alberta, you need to shell out higher premiums than most other provinces in Canada.

Home insurance tips for property owners in Alberta

Now you know why property insurance in Alberta looks comparatively expensive, it’s time to run down these strategies to maximize your insurance benefits.

1. Flooding

Many localities in Alberta are prone to frequent flooding. It makes sense to check out whether your insurer would cover overland floods. If not, be prudent enough to purchase a rider to secure your property against flooding. Also, check out the recent history of flooding due to melting snow or rain in your locality in case you are willing to purchase a house.

2. Wildfires

Following Alberta’s wildfires in 2016, homeowners are becoming increasingly concerned about these disasters. However, unlike flooding, most insurers would cover wildfires. Before you purchase a policy, check whether there is any limit on the coverage you would get for wildfire damages. You can also opt for an add-on if you feel the amount of coverage is insufficient.

3. Sewage backup

While certain insurers cover plumbing and sewage systems accidents, others don’t. It makes sense to shop around or consult your insurance expert regarding established insurers who would cover the sewage system. This would secure your property against incidents related to plumbing.

4. Storms and tornadoes

Property owners in Alberta encounter around 16 tornadoes each year. Places like Edmonton and Pine Lake are particularly susceptible to storms. Considering the tangible danger, get adequate coverage for your property through insurance. Make sure you are aware of the extent of coverage available.

5. Earthquakes

Although Alberta is prone to wildfires, floods, and tornadoes, the province has not experienced earthquakes lately. Therefore, you might save on your insurance premium by skipping the earthquake cover altogether.

6. Freezing temperatures

Winters in Alberta, particularly in the northern parts of the province, can be freezing. Keep your pipes adequately insulated, and take care to dry the hoses. This might prevent them from cracking and eventually save you from making a claim.

 What factors affect your home insurance premiums in Alberta?

Apart from the demographic factors discussed above, property insurance premiums in Alberta also depend on certain personal aspects. For instance, your credit score and insurance claim history have a direct bearing on the premiums. Having a poor credit score and a record of making frequent claims can result in increased premiums.

Also, the building material, type of property, and age of your home determine the insurance premium. You might consider renovating the property or replacing the roof to cut down the insurance costs. Moreover, if your electric, heating, and plumbing systems are in good shape, reputed insurers might consider slashing the premiums considerably.

Endnote

While purchasing an insurance policy in Alberta might appear to be an expensive ordeal, there are ways to save money on your premiums. Most of the time, reputed insurers would be ready to offer you great deals and discounts. Besides, you can adopt certain strategies to reduce your insurance premiums.

Once you consult a reputed insurance advisor, you will know all these tactics. This explains why homebuyers in Alberta consult established insurance professionals before choosing the policy.