Alberta home insurance calculator

The amount of coverage you buy:

This is the primary factor insurance companies use to determine your home insurance payments. How much home insurance you buy will depend on the type of policy you’re after. For example, do you require a run-of-the-mill policy that covers the basics, or do you need something a little more comprehensive? Perhaps you have high-value items in your home, like jewelry and artwork, that you need to purchase additional coverage for. Or you live in an area prone to extreme weather and require things like overland flood coverage.

What it costs to rebuild your house:

This is a big one for insurance companies. If your home is damaged or destroyed by inclement weather or some sort of accident, your insurance company is going to be on the hook — either fully or partially — for the cost to repair or replace it.

How much your valuables are worth:

What’s inside your home is also a major factor in determining your insurance premiums. Policies will often carry a dollar limit for replacement of your home’s contents. If the items you have inside your home exceeds that dollar amount, you may want to consider buying additional coverage.

In addition to the factors that go into calculating your home insurance premiums, the items below may also come into play.

Mortgage lender:

What you pay for home insurance may also vary depending on which lender you decide to go with. Some lenders may require you to buy additional coverage, for instance, which translates into higher premiums. This is why it’s in your best interest to compare the market using price comparison websites like LowestRates.ca.

Interest and other fees:

If you don’t pay your premiums on time each month or year, you may be charged additional fees. That’s why it’s crucial to make sure, for example, that your credit card isn’t going to expire before you sign up with your new insurance company. This would likely result in a late payment fee. If you accumulate too many of those, your insurance company may cancel your policy. It’s also important to consider monthly interest when calculating your home insurance costs.

Where you live:

Location matters to insurance companies when determining your insurance rates. If, for example, you live in a high-crime neighbourhood, you might face higher rates. Or if you live in a more affluent neighbourhood, where home prices are higher, you could also face higher rates. To find out how this will have an impact on what you pay monthly, use our home insurance calculator for Alberta.

How close you are to a fire hydrant/station:

Living close to a fire station might mean being woken up in the middle of the night, but it could also lead to lower premiums because there’s a reduced chance of substantial property damage. The opposite is true, too, especially in rural or remote areas, where homeowners could face higher rates for living farther from a fire station or hydrant.

The age and condition of your home:

Just like we age, so do our homes. And over time, they become more susceptible to damage. If you make upgrades and repairs to your home to avoid damage from old leaking pipes, for instance, or a deteriorating roof, this could help lower your premiums. This is why newly built homes tend to come with lower insurance rates.

Working from home or renting it out:

If you work from home or run a home-based business, you could pay more for home insurance because there are additional items that would need to be insured, such as a laptop. If you’ve decided to rent out your home, then you will need liability insurance to protect yourself from being sued if someone is injured on your property. This coverage can increase your premiums.

The number of claims you’ve made:

When insurance companies are figuring out what to charge you, they want to know if you have a history of making frequent home insurance claims. If you do, this will likely increase your premiums, since you then appear more “risky” to the insurance provider.

How old you are:

Why does age matter when it comes to protecting your home? Because as you get older, you may have a harder time maintaining your property. This leaves the potential for accidents to happen, either in the home, or on the property, and as a result, you may face higher premiums.

Your home’s heating system:

The way your house is heated also has an impact on your premiums. If, for instance, your primary source of heating is oil, you might pay more for home insurance because oil heating systems are riskier than a gas furnace or electric heating system since there’s the chance of leaks. Similarly, if you have a wood stove instead of a gas stove, your insurance provider might charge you a higher premium because there’s an increased risk of fire or carbon monoxide poisoning.

Install security and safety features:

Having a monitored burglar alarm or fire alarm system signals to insurance companies that you’ve taken steps to reduce your risk of theft and of fire, which can in turn reduce your premiums.

Take measures to prevent water damage:

Installing a backflow valve or a sump pump can also result in lower premiums.

Build your roof with weather-resistant materials:

Another way to save on home insurance is to upgrade your roof using materials that prevent weather-related damage, such as class four asphalt shingles or slate tiles.

Bundle your home and auto insurance policies:

Perhaps the easiest and most common way to save on insurance is to bundle your auto and home insurance with the same insurance provider. We encourage you to reach out to your insurance company and get a quote for bundling both forms of insurance. You’ll be surprised by how much you can save.

Increase your deductible:

When you agree to pay a higher deductible, which refers to the amount of money you’ll have to pay out of pocket when you make a claim, you’ll benefit from lower premiums.

Don’t switch insurance companies in the middle of your policy term:

It’s not that doing this will result in you paying more for insurance, but you might have to pay a penalty for ending your policy before it renews.

Inquire about discounts:

This is an easy and free way to save money. Simply ask your insurance company about potential discounts and find out what you qualify for.

Don’t make too many claims:

If you make multiple claims with your insurance company, they might see you as a higher-risk customer to insure, and as such, will raise your premiums.