This past spring, southern Alberta suffered the costliest natural disaster in Canadian history. All told, the province’s insurance companies were on the hook for over $1.7 billion in property damage. As a result, many will be making changes to the way they provide coverage. A number of the province’s leading insurance companies are altering the way they underwrite insurance policies, and it will affect home insurance in Calgary come renewal time.
Home Insurance Calgary: Changes Are on the Way
As was proven this past spring, Alberta can be a disaster-prone area, particularly in the province’s southern reaches and in regions where the mountains meet the low-lying prairies. Given the cost of this spring’s floods, and given the risk of future natural disasters, insurance companies are poised to adopt numerous strategies to reduce their risk exposure.
Some of these changes may include:
- Rate hikes. The most direct and obvious change to home insurance in Calgary and Alberta could come in the form of rate hikes. Some insurance policy holders will still be able to retain the exact same coverage they currently have, but it may cost more next year than it did last. This is a way to spread loss out over the many, and is an option for companies to be able to continue to cover losses for their clients. Rates may rise, but should remain stable so long as another major event like the 2013 floods does not occur.
- Differences to items covered under the “insured perils” designation. Another way insurance companies could limit their risk exposure is by making changes to what your policy does and does not cover for the same rate you currently pay. Thus, while your actual rates may not increase, the comprehensiveness of your coverage may be altered. “Insured perils” are specific risks covered by your policy; common examples include hail damage, lightning damage, and wind damage. Your insurance company may strike some perils off your policy altogether, or reduce the maximum claim amount you are entitled to if a named peril causes harm to your property.
- Alterations to policy deductibles. The third major way insurance companies could reduce their financial risk is by raising policy deductibles. Be sure to look carefully at your options with your provider or broker if you receive a proposal to renew your current policy at a comparable rate, but with a higher deductible. It may continue to be a beneficial plan for you.
Home Insurance Calgary: You Have Options
If you face changes to your home insurance in Calgary come renewal time, the important thing to remember is that you have options. While the possible changes are expected to affect the insurance industry province-wide, there remains plenty of competition and consumers can seek alternatives if they are not happy with what their current insurance company is proposing.
To enjoy the greatest possible range of options on your home insurance in Calgary, choose the assistance of an insurance broker. An insurance broker works for you, not for the insurance company, so you always enjoy the best possible coverage at the best possible rate.
Home Insurance Calgary: The Lane’s Advantage
At Lane’s Insurance, we help all our clients make informed decisions about their home insurance in Calgary. We’ve put together an informative report to help you stay ahead of rate hikes and other changes coming in the province’s insurance industry.
We are also happy to provide you with all the advice and online resources you need to navigate the changing landscape of Alberta homeowners’ insurance. From fast, free quotes to money-saving insurance bundles, we offer comprehensive options for all your personal and business insurance needs. If you would like to discuss your specific situation in regards to Calgary home insurance, please feel free to contact us directly.
