A recent Calgary Herald article tells the tale of residents of the city’s northeast having difficulty obtaining proper home insurance coverage due to their neighbourhoods being located right in the middle of Hailstorm Alley and, subsequently, the location of several major hailstorms.
Residents are raising the alarm about what they’re calling an “insurance crisis,” as some have seen soaring premiums, massive deductibles, and their renewals denied.
At a recent event, about 20 residents urged government action and launched a petition addressing insurance challenges. One resident spoke of their challenges having their home insurance renewed due to a $45,000 hail damage claim after last August’s monster storm. That storm pummelled more than 60,000 homes in the northeast, resulting in 130,000 claims and $3.25 billion in insured losses. It is now Canada’s second-costliest natural disaster. Combined with the 2020 storm that hit much of the same areas, Calgary has seen over $5 billion in hail-related insurance claims in five years.
After nine rejections, the resident eventually found an insurance provider, but they now have a $10,000 deductible and premiums that have more than tripled.
Government response
The municipal government has revived a motion to assess the city’s cancelled resilient rooftop rebate program, which provided up to $3,000 to homeowners to reinforce hail-damaged roofs with better materials. The program was established after the 2020 hailstorm, however only 1,600 households received support before the funds ran dry and were not reinstated.
While the provincial government does not regulate insurance directly, they say they are working with partners to strengthen building codes and explore broader solutions.
Proactive construction with durable materials is far more cost-effective than reactive fixes, many argue, and that at a minimum, Calgary’s hail-prone areas should be subject to much stricter provincial building codes — ideally, those standards would apply citywide.
More durable materials such as fibre cement siding and traditional stucco offer significantly better protection against hail than vinyl siding. But they come at a higher cost, of course.
Vinyl also has environmental drawbacks. When damaged, it’s often discarded in landfills, where it can take centuries to break down. As a plastic, it also contributes to microplastic pollution, particularly in water systems.
While current building codes include some environmental protections, it’s ultimately up to builders to choose whether to use more resilient materials. With rising housing costs, affordability often takes precedence over durability.
What can be done about hail damage and insurance?
We at Lane’s are experts at finding coverage for unique circumstances. As insurance brokers, we work with Alberta’s most trusted insurance carriers, meaning we have the ability to pick and choose from excellent policies to find the best one for you. One option we have found is the availability of specific hail-damage deductibles.
We also advise those in areas prone to hail that it is extremely important to keep your roof in good repair. You may not be able to make a claim after one of Calgary’s colossal hail storms if you have not done so. Most policies take into consideration the age and condition of your roof before considering reimbursement.
In addition, we advocate for better building policies. In the Insurance Bureau of Canada’s (IBC) Resilient Home Retrofits Program Proposal of 2020, they propose the creation of a ResiliGuide home resiliency rating and labelling system similar to EnerGuide, which has helped increase the energy efficiency of products by introducing an official mark of the Government of Canada for those that match certain criteria. The IBC’s Resilient Home Retrofits Program Proposal would work the same way. The IBC says, “…one of the greatest opportunities available to the federal government is to operationalize a plan to make Canadian homes more climate resilient.”
Calgary home insurance options from a trusted broker
Insurance brokers have access to exclusive rates or coverage options not available to the general public due to our long-standing relationships with our providers and our ability to bring them the very best clients for their policies. In addition, we also know how to get you discounts you probably didn’t even know you qualified for, and are proud to provide industry-leading claims support.
We are pleased to serve homeowners and business owners throughout Alberta. Contact us at:
- Our Calgary office
- Our Edmonton office
- Our Banff office
- Serving the rest of Alberta
