Calgary’s Real Estate Board (CREB) recently released its monthly report, which points to prices somewhat stabilizing after several months of decreasing across all types of residences (detached and semi-detached homes, row houses, and apartment condos). The average price of a detached home has risen slightly from the start of the year to $743,900, down just 1.9% year-over-year. Semi-detached homes are sitting at an average of $691,000 year-over-year, down just 0.3%, and row houses are now at $418,500, down 6.1% year-over-year.
The most marked decrease has been consistently shown in the apartment condo market, prices for which have dropped 9% year-over-year. Several years of high construction volume have caused an oversupply, with 17,000 new units currently being built. That has led to five months of supply currently available and a buyer’s market in the condo realm.
July was a slightly better month for condo owners looking to sell, however a whopping 1,016 units still came on to the market to sell in Calgary as compared to 798 in 2025, marking an increase of 21%. Close to half of those sold (509), as compared to 408 in 2025, which are comparative numbers, but 1,999 still remain for sale. Condos have been taking an average of 45 days to sell and the average price dipped to $290,000 from $310,000, a decrease of about 8% for July alone.
Does a lower condo value mean revisiting condo coverage?
Unfortunately, a lower condo valuation does not necessarily correspond with lower condo insurance costs. Remember that real estate market values and insurance coverage are based on two completely different metrics:
- Market value vs. Replacement cost: Market value (often also called assessment value) reflects what a buyer will pay for a property, factors that are driven by location, land value, and, of course, real estate supply and demand. Insurance, however, is built to cover replacement costs, which are the physical expenses required to rebuild or repair damage to your unit, such as its interior walls, fixtures, cabinetry, and finishes.
- Inflation and repair costs: Even when real estate prices drop, the cost of construction materials (drywall, lumber, flooring) and skilled labour rarely decreases. In fact, rising inflation and labour shortages are pushing repair costs up, which can actually increase your insurance premiums despite the fact that its value has dropped.
- Shared risk: Your condo corporation’s master insurance policy covers your building’s exterior and structure. If your condo board is facing higher building insurance rates or claims, your individual policy’s loss assessment coverage or overall rates may also go up regardless of local real estate trends.
It’s never a bad idea to revisit your home’s coverage, especially with a knowledgeable insurance broker. We at Lane’s Insurance work for you, not the insurance companies, which are tied to single policies and products. We are independent professionals who work with multiple providers with the goal of finding you the best coverage at the best rate.
Condo insurance holders are able to make changes to their policy at any time, however if you are considering changing providers it is best to start making inquiries during the renewal period. Cancellation of a policy prior to its expiry can negatively affect your rates going forward, even though you are switching companies. Again, shopping around is never a bad idea and could lead to major savings.
Important need-to-know about condo insurance
If you are purchasing a new home in the form of a condo, it’s important to know that in 2020 the Government of Alberta enacted a major change to condo legislation.
The new rule allows condominium corporations to require individual owners to pay the entire building’s deductible — up to a maximum of $50,000 — for claims where the damage can be proven to have originated in a suite or a private area. That’s why if you are a holder of a condo insurance policy, it’s very important to ensure that your coverage:
- Includes deductible insurance
- Is good for up to $50,000 of coverage
Luckily, condo insurance as a whole remains highly affordable.
Condo insurance in a nutshell
The condominium corporation that runs your new building will carry a master insurance policy that covers the building and its common areas. However, this policy does not apply to improvements to your individual unit or your personal belongings. That’s where your condo insurance comes in.
Condo insurance covers:
- Unit improvements and betterments
- Loss assessment
- Unit coverage
- Personal property
- Additional living expenses
- Legal liability
- Voluntary medical payments
- Voluntary property damage
If you have high-value possessions such as jewelry, art, antiques, or collectibles, these items can be subject to special limits. An example is the common special limit of $5,000 for jewelry, which is not nearly enough for many. Knowledgeable brokers such as us at Lane’s Insurance know the exact right questions to ask to ensure your most valued possessions are scheduled on your condo policy if necessary.
Condo insurance from Lane’s of Alberta
At Lane’s Insurance, we are always willing to help explain the parameters of your policy and gauge if you have the coverage you need. If you have any questions about your condo insurance or would like a quote, contact us at our Calgary, Banff, Edmonton, or greater Alberta offices to see what we can do for you.
