Edmonton Home Insurance Rates at Low End Compared to Province

The last six years have seen a host of natural disasters in Canada, with three of the costliest disasters occurring in Alberta. Over 30 percent of the town of Slave Lake was destroyed in the 2011 fires, costing $700 million in insured damage, according to the Insurance Bureau of Canada (IBC).

Fort McMurray Fire and Calgary Flood Insurance Costs

Fort McMurray is still recovering two years after the devastating wildfire that cost $9 billion in losses and caused 88,000 people to flee their homes. The southern Alberta flood of 2013 incurred $6 billion in damages.

Edmonton Home Insurance Premiums Below Provincial Rates

It’s no surprise that these catastrophic events have pushed insurance premiums higher in Alberta.

Edmonton’s exposure to natural disasters is relatively low compared to other major cities in the province, so its’ premiums sit below the provincial rate level but are in line with the national average of $67 per month.

The province’s capital city is also at a low risk of earthquakes and hailstorms.

Natural or man-made disasters aside, it doesn’t matter where you live, your home is still at risk for flood, fire, and vandalism damage or destruction—among other perils.

What Home Insurance Policy Should I buy?

So, what type of home insurance should an average Edmontonian purchase? Typically, there is a wide range of coverage, from comprehensive to a no frills policy.

Home Insurance Policy Types:

• Comprehensive Policy:

A comprehensive policy is deemed the best coverage, and most pricey, and includes coverage for the building, its contents and any small spaces that are detached but, on the property, such as a shed or a garage, for “all risks.”

There are some exclusions, however, so check with our insurance representative. Additional coverage is available for sewer back-up, overland flooding, earthquakes and other perils.

• Basic or named perils Policy:

A peril is a chance event that is unexpected and accidental as far as the policyholder is concerned (IBC). There can be up to a dozen insured perils including fire, theft, falling objects, and water damage from an appliance.

Uninsured perils include water damage from floods, frozen water pipes and landslides, among other situations. This type of policy allows you to carry some of the losses yourself.

• Broad Policy

Broad coverage offers the homeowner a slightly cheaper option that provides basic coverage for the pricier items in your home (same as the Comprehensive policy) and named perils, but not the uninsured perils.

The main difference is that there is an itemized list of perils that you only have coverage for. This is very specific so in the event of an unusual situation and loss, an event may not be covered.

• No Frills Policy

A No Frills policy offers the most basic home insurance coverage for properties that don’t meet insurance standards (think a flipped home or fixer-upper). If your home has a structural defect, you would be a candidate for this type of policy.

The condition of your home would be determined from a house inspection and potentially you would be able to upgrade to a better policy based on improvements to the home in the future.

• Personal Liability

If someone slips on your icy sidewalk leading up to your front door, you’re liable for any injuries, excluding family members who live in the home. With the personal liability insurance portion of your plan, you’re covered up to a certain limit. Property damages are also covered under this policy and include damages that happen at home or anywhere in the world.

• Additional Home Insurance Coverage

Remember to think of coverage for areas that may not be automatically covered, even with the best comprehensive policy. A home-based business and valuable personal items are two situations that would require additional coverage.

Although home insurance is not mandatory, it’s a wise decision to protect you and your family from unexpected events that can occur that are beyond your control. Take inventory of your assets and call your insurance provider. For condo owners, consult your Alpine Insurance broker for condo/strata customized plans.