Alberta home insurance rates have been steadily increasing over the past couple of years, with some carriers seeing increases of up to 20%. Unfortunately, this trend isn’t expected to change any time soon. Read on to learn about some of the most common reasons for rate increases, as well as some suggestions on how to keep your price low.

Aging Homes

Home insurance is cheapest when a home is brand new. As your home ages, it’s not uncommon to see your rates increase because the chance of a burst pipe, electrical fire, or a leaky roof increases as well.

Claims Frequency & Severity

The money collected by home insurance companies is pooled together and used to address the costs associated with the claims of homeowners in a population. If there is an increase in the frequency and/or severity of claims in a population, the amount of money that needs to be collected by the insurance providers will increase. In Alberta, the past decade or so has seen many natural disasters that have had costly results.

How To Keep Your Rates Low

Below are a few ways you can lower your insurance premiums:

• Raise your deductible.
• Review extra coverage. There are lots of options when it comes to adding additional coverage to your policy. Look at what you currently have - is there anything you’d like to add or remove?

Make sure to chat with your broker to learn about what your options are come renewal time.