Alberta Home Insurance Calculator

How is home insurance calculated in Alberta?

Home insurance calculations in Alberta are based on multiple different factors – and each insurer has their own way of making those calculations. That’s why when you go around shopping for home insurance, you’ll find different rates.

However, it’s important to stress that insurers don’t assign their rates at random. There are certain basic factors that more or less all of them consider, including these:

• Cost of rebuilding your home: The cost of building a home from the ground up factors in the home’s square footage, number of floors, overall construction as well as material and labour costs in your area. The higher the cost, the higher the premium.
• Piping: Older pipes, especially those that are galvanized or made of lead, are more likely to leak or crack, which can cause water damage to your home. Because of the risk they pose, your premiums can be much higher than they should be. If your home is old, consider switching to either copper or plastic pipes.
• Electrical wiring: If you have aluminum or knob-and-tube electrical wiring, your rates will be higher, as outdated wiring poses a high risk of fire. In fact, before insuring you, your provider may ask you for a guarantee that your home doesn’t include such wiring or inspect it to make sure the wiring is safe. Same applies if your home has fuses instead of breakers or an electrical service that’s below 100 amps, as they pose a higher risk of fire too.
• Roof’s age: If you haven’t renovated your roof in over 20 years, it might already be suffering from issues such as poor insulation and leaks, both of which can cause severe damage to the rest of your home. As a result, insurers may cover no more than 25% of your roof’s replacement cost, should it cause damage. Your premiums will be high as well.
• Renovations: If you happen to renovate your home, you may inadvertently increase its value, and by extension, your home insurance rates. This doesn’t mean you shouldn’t renovate – just be mindful of the impact this might make.
• Location: Your location may determine your rates. Insurers group their rates by mailing districts – designated by the first three characters of your postal code (known as a ‘forward sortation area,’ or ‘FSA’). For example, if you happen to live in a high-crime district, where break-ins are common, then your rates will be higher. The same applies to weather-related events, such as hurricanes and tornadoes. Alberta in particular is susceptible to freezing temperatures, which can make your rates higher.
• Proximity to fire halls and hydrants: This is related to location, but in a very specific way. If your home is far away from a hydrant or fire station, it’s more likely to suffer severe damage or total loss due to fire. Most homes in urban areas don’t suffer from this issue, but if you’re located in a rural area, then this might make your rates higher.
• Claims history: The more times you file a claim, the higher your rates will be. This is because filing claims in the past increases your likelihood of filing claims in the future. Your best bet is to limit your claims to major events only. Avoid filing claims for small maintenance concerns, such as minor pipe leaks or other forms of easily repairable damage.

How to get an estimate for your Alberta home insurance

To get an estimate, consider checking out RATESDOTCA’s Alberta home insurance calculator, which you can access from just about any page on this website, including this page. It’s easy to use, as all you need to do is follow these steps:

Step 1: Tell us your address

After selecting whether you want home, condo or tenant insurance, type in the following:

• Your postal code
• Your home address

Step 2: Tell us about yourself and your property

Next, give us a few details about yourself and your property, including:

• Your name
• Who occupies the residence
• When you want your policy to start
• Date of birth of the eldest applicant
• When you moved into the property

Step 3: Tell us about your past and current insurance policies

If you have an active home insurance policy, provide the following details:

• How long you have had insurance
• How long you have been insured with your current provider
• How many claims you have made in the last five years (if any)
• How many cancellations you have had due to non-payment (if any)

If you don’t have a home insurance policy at the moment, but had one in the past, specify the following:

• How many claims you have made in the last five years (if any)
• How many cancellations you have had due to non-payment (if any)

Step 4: Select your discounts

To get discounts on your home insurance policy, answer the following questions:

• Are you open to bundling multiple policies with the same insurer?
• Does your property have a monitored fire alarm?
• Does your property have deadbolt locks?
• How many fire extinguishers are on your property?
• Does your property have a monitored burglar alarm?
• Does your property have a sprinkler system?
• Are the occupants non-smokers?
• How many mortgages do you have on the property?

Step 5: Get your rates

Lastly, provide us with your email address and phone number to access your free home insurance rates from 50+ providers in our partner network.

Mandatory and optional home insurance coverage in Alberta

Unlike auto insurance, home insurance isn’t technically mandatory in Alberta. However, if you’re like most people, you’ll likely need to take out a mortgage to buy a home, and most mortgage lenders require homeowners to purchase insurance. So, in that sense, it is mandatory.

With that in mind, here’s everything you need to know about home insurance coverage in Alberta:

Types of home insurance in Alberta

There are four types of home insurance policy you can get in Alberta. They differ primarily by the amount of coverage they offer and by price. Though their nomenclature differs from insurer to insurer, they usually boil down to the following:

• Basic: Also referred to as ‘named perils,’ this is the cheapest type of coverage you can purchase, which makes it incredibly limited. It protects your property and its contents only against the perils listed in your policy. So, if fire, for instance, is not listed, then your home is not covered for it.
• Broad: This is essentially a downgraded version of the comprehensive coverage. It protects your property from anything that isn’t listed as an exception in your policy. In this case, if fire is not listed, then your property is protected from it. Note that when it comes to your possessions, they are only protected from the perils named in the policy, same as under the basic coverage.
• Comprehensive: Also known as ‘all perils,’ this is your full coverage. It protects your property and possessions from all perils, other than a handful of named exclusions. If, for example, fire is named as an exclusion, then you’re not covered for it. This is the most expensive type of home insurance you can buy in the province. However, this doesn’t mean it covers everything. If you want additional coverage, then you might have to purchase it separately.
• No-frills: This coverage is even more bare-bones than the basic one and is meant for special cases only. If your home is old, for instance, and highly likely to suffer damage due to outdated plumbing or poor structural integrity, then it may not qualify for regular insurance, such as basic, broad or comprehensive. That’s why no-frills coverage exists. It’s especially useful when you require home insurance for mortgage purposes. However, it should be a temporary measure – until you address the issues that prevent you from getting proper coverage.

What gets covered

Whether you go with basic, broad or comprehensive coverage, it must cover the following:

• Property: This usually includes every structure on the property, such as the home itself, guest house and other buildings. The covered perils will depend on your policy type – whether it’s basic, broad or comprehensive. However, don’t take it for granted that all your structures will be covered. Consult with your insurer to make sure.
• Contents: This entails your personal belongings, such as electronics, furniture, clothing and so forth. Note that some items may be too pricy to be covered by regular insurance, even if you buy a comprehensive policy. Items like fine art, jewelry and collectibles may require policy add-ons to be fully protected. To ensure all your items are covered, evaluate everything you own and consult with your insurer.
• Additional living expenses: If you become temporarily displaced due to an insurable event, this will cover your living expenses while away from home. For example, if you’re forced to live in a hotel, your insurance provider may pay for both your room and groceries for the length of your stay (or up to a certain amount).

Liability coverage

Your liability coverage would usually cover these items:

• Personal liability: This will protect you if someone visiting your property gets injured.
• Medical payments: If you accidentally injure someone on your property, this will pay for the injured person’s medical expenses for up to a year – from the date of the injury.
• Property damage: If you, or minors in your care (under 12 years), cause accidental loss or damage to someone’s property, then this will protect you.

Note that if you do any of the above with intention, then your liability coverage will become void.

Commonly covered perils

The most commonly covered perils in Alberta – whether you go for basic, broad or comprehensive coverage – will typically include the following:

• Fire: No matter what causes the fire, your insurance provider will cover the costs of rebuilding or repairing your property as well as recovering your belongings.
• Lightning: Should lightning strike your property, it could damage the wiring in your walls as well as break your appliances and electronics. This will cover the costs of repairing and/or replacing whatever ends up damaged.
• Theft and vandalism: If your home happens to get robbed or vandalized, this will pay for the replacement of the stolen items.
• Water damage: This pays for the damage to your property and its contents, if caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers and similar appliances inside or outside the house. The tricky part is understanding what’s excluded. Most coverages exclude sewer back-up and overland flooding – which you would be right to assume fall under this – so be sure to confirm what is and isn’t covered with your insurer.
• Hail and wind: If wind or hail damages your property or its contents in any way, this will pay for them. This includes damage from flying debris, falling trees and branches (only if caused by hail or wind).
• Falling objects: This protects your property and belongings from falling objects, including space debris and space craft. There are exceptions, such as objects moved by landslides or snowslides. Confirm with your provider, so you know what’s covered.