Every homeowner wants their house to be covered against unforeseen damages and losses. Home insurance is a ticket to peace of mind for all such homeowners. But sometimes, looking for the right home insurance policy can become a real headache.
Nonetheless, the experts at Surex will help you learn more about the average home insurance cost in Alberta, which will give you an upper hand when it comes time to choose the right home insurance policy.
What is Home Insurance in Alberta and What Does it Cover?
A home insurance policy provides financial coverage to protect homes from any expected danger or losses. The homeowners would not need to pay for damages out of pocket (except for the deductibles). There are usually three kinds of insurance in Alberta:
Basic Policy
Basic coverage is also known as named perils. This is one of the most affordable options, but it offers the least amount of coverage. This coverage only covers a few named perils that are listed in your insurance policy. You have the choice of choosing what to include in your coverage.
Broad Policy
This is a good choice for those who do not want to opt for the expensive comprehensive or cheap basic policy. This policy includes the building, coverage from named perils, and contents of the building. It is medium price range, making it a great choice for homeowners that want cost-efficient yet extensive insurance policy.
Comprehensive Policy
The policy encompasses all the components of insurance of a building and its contents. It is one of the most opted-for insurance in the province of Alberta. However, insurance policies do not cover certain circumstances like predictable perils, earthquakes, or backed-up sewer coverage.
Nonetheless, you can always choose optional coverage that can be added along with your insurance.
It usually depends on what kind of insurance the homeowner is looking to purchase. However, it is highly recommended to get comprehensive coverage for a house.
Factors Determining Home Insurance Cost
Various factors affect the home insurance premium costs. Some of the most common variables are listed hereunder:
Location of the House
The neighborhood and location of the house determine what perils a property may be affected by the most, and the premiums can differ accordingly. For example, if a neighbourhood is prone to thefts, the premium for the theft peril will be higher. Likewise, if a house is situated in a gated community, the premiums can be higher than a location that is in the suburbs.
Quality of the House
The house itself also influences the insurance premium costs. If the house is made of high-quality materials, has granite countertops, and is fitted with the best appliances, the premiums will be higher.
Though size is one of the primary factors, these additional factors also play a significant role. Furthermore, if a house has more additional structures like a small playground or a pool, then the premium will be higher than the coverage would include damage or loss caused by such property.
Security Features
If a house in Alberta has security systems fitted, then the premium costs are much lower than those that do not. An alarm system gives the house owner access to stickers attached at the front that can deter criminals and alert the local authorities in case of an emergency. It gives the insurance company a slight relief in a way that influences the lower premium costs.
Natural Disasters
Although natural disasters are part and parcel of nature, they are also covered by insurance companies. But depending on the part of Alberta that you live in, the insurance prices can differ. For example, if you stay in an area that is more prone to floods, then premiums for your house will be higher than for a similar house in another locality.
Credit Score
The premium costs are also dependent on you and your credit history. If you have a good credit track record, then you can expect lower insurance costs.
Your claims history also plays an important role. Homeowners with no claims in the past often qualify for a no-claims bonus. This can lower your future premiums.
The Average Home Insurance Cost in Alberta 2021 vs Average Home Insurance Cost Alberta 2020
In recent years, Alberta has seen a slight rise in home insurance costs. In 2021, the average home insurance is estimated to cost around $1,772. This is a noticeable difference from the average home insurance cost Alberta homeowners faced in previous years.
However, the home insurance cost can widely differ depending on the factors mentioned above and some others applicable for certain insurance companies.
Alberta has had a history of wildfires and floods. This has made insuring a home in Alberta expensive in comparison to other parts of the country. However, this does not mean that you should choose the cheapest insurance available. You should instead consider the extent of coverage you desire and then make a decision.
How To Reduce the Home Insurance Alberta Average Costs?
Some ways can help you reduce the home insurance costs you pay. Some of them are:
- Bundling — Bundling home and vehicle insurance from the same insurance company can earn you a bundle discount.
- Install Security Systems — Some insurance companies provide additional discounts to the customers having substantial security features and devices installed
- Research — Conduct research by comparing companies and agents who provide insurance to find the best rates for your home.
- Increase Deductible — Another way to reduce your home insurance policy premium is to increase your deductible. However, it is prudent to mention here that, with an increased deductible, you may have to expend a more significant amount to claim the home insurance benefits in case of damage or destruction.
- Credit Score — Maintain a good credit score and make timely payments.
Endnote
So, if you are a homeowner, you are now better equipped to buy a home’ insurance policy. But you should also look for reputable and reliable insurance companies so that your claims process can be smooth and hassle-free.
