The Best Home Insurance in Fort McMurray, Alberta

Home insurance in Fort McMurray 

Fort McMurray in Northeastern Alberta is home to a relatively prosperous oil town. As a result, wages are high, and it can be a rather expensive place to live. Beyond the good jobs and salaries, there are risks of living in the area — with the 2016 wildfires looming large in the memories of many residents. 

Much like elsewhere, home insurance is not mandatory in Alberta but is required from lenders offering mortgages to customers. So, it is essentially mandatory. 

Homeowners in Fort McMurray will want to protect their homes, likely their most valuable asset, and their possessions. That is why you'll want to purchase home insurance for your property. 

Types of home insurance in Fort McMurray 

These are the most common types of home insurance coverage in Fort McMurray. 

Homeowners can choose from one of three insurance package types. Insurance providers may label them differently, but they're generally described as outlined here: 

• Basic – This is the least expensive package and offers the least coverage. It protects your home against perils named in the policy, such as fire and wind. If it isn't named in your policy, you don't have insurance protection against it.  
• Broad – A broad home insurance package protects the home against all perils and named peril coverage protection for the contents of your home. It is a standard policy. 
• Comprehensive – This is the most inclusive and expensive coverage. It protects against all perils to the home and its contents. It is often referred to as an 'all perils' policy. 

Property coverage 

Here's what your insurance policy covers in terms of property damage:

• Property and building – As its name suggests, this type of home insurance policy protects both the structure(s) on your property and the property itself from various perils. Protected incidents include fire, theft, vandalism and water damage. There may be other structures on your property that are not included in this policy, so you should talk to your Fort McMurray home insurance provider to get the full coverage you need. 
  
• Contents and personal property –Contents and personal property coverage protects your possessions, such as home furnishings, personal items, clothing and more, against theft and vandalism. More expensive or valuable items like jewelry or fine art may not be protected under a standard policy. Excluded items can be covered with additional coverage that you can buy extra. 
  
• Additional living expenses – Insurable events such as wildfires or evacuations relate to climate change that can displace you from your home. This protection covers your temporary housing costs. For example, if damage to your home forces you to spend a week at a hotel, additional living expenses protection will cover the room and food costs up to a certain amount. Talk to your provider about any caps on protection. 

Liability coverage 

Your home's insurance also offers liability coverage. Here's what's included:

• Personal liability – This coverage protects your liability in the event of injuries or property damage sustained by a third party while they are on your property. The default on most home insurance plans for personal liability is $100,000, but some homeowners should have coverage for as much as $1,000,000. Depending on your policy, this can go as high as $5,000,000. 
  
• Voluntary medical payments –Sometimes, accidents that you're not liable for can happen. This coverage will cover medical expenses for up to one year from the accident date. 
  
• Voluntary property damage – This coverage is for unintentional direct loss or damage you cause to someone's property. It also covers accidental loss or damage to someone else's property by a minor (12 years or under) in your care.  

Add-ons to home insurance coverage in Fort McMurray  

Fort McMurray home insurance can only go so far. You may find you have needs beyond what standard policies offer. These add-ons can be purchased to protect your home and its contents further. 

These are some of the most common home insurance add-ons, also known as riders, that you can add to your home insurance policy: 

• Overland water – Not all insurers offer it, but overland water covers property damage from overflowing water, nearby rivers, streams, lakes and thawing snow. 
• Sewer back-up – Protects your home when a main sewer backs up and causes damage. 
• Earthquake – Covers losses or damage caused by an earthquake. This add-on is more useful for people living on the West Coast, where earthquakes are more common. 
• Mass evacuation – If an event like a flood or wildfire triggers a government-issued evacuation order, this add-on pays for some of the expenses you incur while away from home. Each provider may cap compensation at different levels. It's best to talk to your provider to see how much protection you will receive and for how long. 
• Identity theft – Covers the cost of replacing important documents, such as your passport. 
• Lock replacement – This add-on provides coverage if you need to replace the locks on your house. 

How much insurance coverage do I need for my home in Fort McMurray? 

The amount of home insurance coverage you need in Fort McMurray may differ from your neighbour's since it depends on your circumstances and requirements. Suppose you live in a neighbourhood exposed to certain hazards like being situated in a flood plain. In that case, you may need more insurance than someone living in a less risky area with a state-of-the-art security system.  

Also, you may want to see if you can increase your mass evacuation coverage if you live near the wildland/urban interface. This term describes the developed zones that abut undeveloped natural areas. These areas are at greater risk for wildfires, as witnessed in 2016.  

The size of your home, how much it costs to rebuild it, and its contents will also determine how much home insurance in Fort McMurray you will need. Talk to your broker or agent about how much coverage suits your situation.

How much does Fort McMurray home insurance cost on average? 

Alberta is an expensive province for home insurance, especially compared to places like Ontario, where the average annual premium is $1,487. A likely explanation for the disparity rests with the fact that some of the costliest insurable events in the country's history — the Fort McMurray (2016) and Slave Lake fires (2011), as well as flooding from the Bow and Elbow rivers (2013) — have occurred in Alberta in recent years.

In Alberta, the average annual premium is $2,239, less than Fort McMurray’s average of $2,528 by more than 7%. The most expensive city in Alberta for home insurance is Olds, with an annual average premium of $2,796 – a more than 10% difference. 

Home insurance rates across the province always reflect various factors, including location, square footage, crime rates, claims histories, climate, and age of the home, for example.

How to get the cheapest home insurance in Fort McMurray 

Getting cheap home insurance in Fort McMurray is quick, easy, and free. Here are some steps you can take to stretch your insurance dollars: 

• Comparison shop – Sites like RATESDOTCA give you fast and easy access to the cheapest Fort McMurray home insurance rates from the city’s top providers. Provide us with some information on the home you want to insure and a few other details, and in minutes, you’ll have a list of cheap insurance rate quotes to compare. 
  
• Bundling – Using multiple insurance products from one provider can also save you money. By bundling home, life and auto insurance, for example, you will qualify for discounts from your provider. Administrative cost savings and rewards for your loyalty can be passed on as discounts. 
  
• Installing a security system – Making your home safe and less at risk of damage or theft can save you money on your Fort McMurray home insurance rates. Your home insurance provider assesses your rates based on risk. Reduced risk means fewer claims and, therefore, lower rates. 
  
• Increasing your deductible – Deductibles are another risk factor your Fort McMurray home insurance provider looks at when calculating your premiums. The higher your deductible and the more you are willing to pay out-of-pocket, the less risk it is for your provider. A lower deductible may mean a higher rate. Consider your budget and talk to your provider about options. 
  
• Upgrades – Renovating your home and upgrading with new and fire-resistant materials will take out potential risks of flooding or fires, for example. Home insurance providers look at that reduced risk and provide cheaper rates as a reward for your efforts. 
  
• Ask for discounts – Many home insurance providers will offer discounts to clients who are members of school alumni associations, unions or other organizations. Seniors can also find discounts. All you have to do is ask.
  
• Improve your credit score – Because credit can be seen as a risk factor, pay your bills on time and keep your credit scores in good standing. The better your score, the lower your risk factor, and the lower your Fort McMurray home insurance rates will be.