A recent Statistics Canada study found that Alberta homeowners have experienced the steepest hike in home insurance premiums in the country over the past two decades. Between 2005 and 2025, home insurance costs in the province climbed by nearly 392%, which is far ahead of anywhere else in Canada.
In recent years the rate of increase has been especially fast. From 2020 to 2025, premiums in Alberta increased by almost 56%, as compared to a national average of approximately 39%.
The Statistics Canada study takes a deep dive into how increasingly frequent and severe extreme weather events are affecting Canada’s insurance industry and, in the end, consumers. As insurers face higher claims costs, those expenses must be paid in some manner. Sadly, the average homeowner is usually the one who takes on the cost.
Extreme weather events have become both more common and more devastating over time, and Alberta is especially affected by those trends. Major years are 2016 and 2024, with 2024 being the most expensive year ever recorded for insured weather-related losses in Canada. Major events included the Calgary hailstorm, which generated approximately $3 billion in insurance claims, and the Jasper wildfire, which resulted in roughly $1.3 billion in insured losses. Alberta alone accounted for about half of the country’s record-setting $8.6 billion in weather-related claims that year.
Before 2024, the previous record for insured catastrophic losses occurred in 2016, when claims reached $6.2 billion nationwide. That number was largely driven by the devastating Fort McMurray wildfire.
More people, more problems
It’s not just weather that is causing premiums to rise in Calgary and the surrounding communities. Alberta’s growing population means there are more homes and properties being inhabited. Those homes and properties increase the potential of exposure to potential losses. Increasing rebuilding and replacement costs, at which Alberta is at the forefront, plus higher prices for construction materials such as lumber, have also contributed to the growth in premium costs.
Although weather conditions were less severe in 2025 than in the previous years, insurers continued to raise rates. They say increases are largely unavoidable, as severe storms that were once considered rare now occur with much greater frequency. Forecasting insurance costs has become extremely challenging because companies must estimate future risks when weather events are becoming less predictable and more severe.
In addition, insurers can’t simply impose dramatically higher premiums on homeowners in the most vulnerable areas, such as northeast and northwest Calgary, because coverage would become prohibitively expensive. Instead, insurance spreads risk across a broad pool of policyholders, meaning catastrophic losses eventually affect premiums for everyone.
Statistics Canada also found that some Alberta insurers operated at a loss in 2024, paying out more in claims than they collected in premiums.
The solution to rising insurance costs is straightforward, it’s believed. Communities must become more resilient to extreme weather. Reducing losses begins with constructing homes that can better withstand severe weather rather than focusing solely on minimizing building costs.
Other measures include avoiding development in flood-prone areas, installing impact-resistant roofing, and investing in disaster-mitigation strategies before major events occur.
City of Calgary hail resistance measures
Calgary previously attempted to address hail-related damage through its Resilient Roofing Rebate Program. Introduced in 2021, the initiative offered homeowners up to $3,000 to install more hail-resistant roofing systems. The program ended in 2022, and the City is now working towards long-term resilience measures. They provide a simple survey where you can check on the vulnerability of your property to high winds and hail, plus several methods to reduce damage at your home.
For Alberta homeowners, investing in hail- and wind-resistant roofing, proper drainage, and water protection measures can be particularly effective, as severe weather and water-related claims are among the leading factors driving premium increases in the province.
Additional ways to lower your home insurance costs
- Bundle your policies: Combining your home and auto insurance policies can qualify you for a multi-policy discount.
- Increase your deductible: Choosing a higher deductible means you’ll pay more out of pocket for a claim, but it can significantly reduce your annual premium.
- Install a monitored security system: Burglar alarms, monitored security systems, and smart home security devices can lower the risk of theft and may qualify you for discounts.
- Upgrade your roof: Impact-resistant roofing materials can reduce the likelihood of hail and wind damage, making your home less risky to insure.
- Prevent water damage: Installing sump pumps, backwater valves, leak detection devices, and maintaining plumbing systems can help lower premiums and prevent costly claims.
- Maintain a claims-free record: Avoid filing small claims when possible. Homeowners with fewer claims often qualify for better rates.
- Review your coverage annually: Make sure you are not paying for coverage you no longer need and that your policy accurately reflects your home’s current value and contents.
- Improve electrical, plumbing, and heating systems: Updating older systems reduces the risk of fire and water damage, which can make your home more attractive to insurers.
- Ask about available discounts: Many insurers offer discounts for retirees, newly renovated homes, loyalty, or paperless billing programs.
Trust Lane’s Insurance for all your home insurance coverage needs
We are a leading Alberta-based insurance brokerage and are proud to partner with progressive providers to ensure our clients have access to the most complete and up-to-date home insurance and auto insurance products available anywhere in the province.
As a brokerage, we work for you, not the insurance companies. When you choose us at Lane’s, you’re opting for a proven company with an excellent track record for customer satisfaction. We also offer outstanding claims support and expert advice that ensures all your insurance needs are met. Get started by contacting us at our Calgary, Edmonton, Banff, and greater Alberta offices today for a fast, free, no-obligation quote for home insurance.
