As extreme weather events become more frequent and destructive, Alberta homeowners are facing steep increases in insurance premiums, with experts warning the trend is unlikely to reverse without significant changes.
Industry officials say the cost of home insurance in Alberta has surged dramatically over the past two decades, rising about 400 per cent as insurers grapple with mounting claims tied to natural disasters.
Some Calgary residents say the increases have been substantial. One northeast homeowner, Sandar Costa, reported their annual premium rose by $500, bringing their total to about $4,000. Another resident, Balwinder Singh, said they now pay roughly $300 a month, or about $3,600 a year, for coverage.
“The reality is that Alberta is the natural disaster capital of Canada. Flood, wildfire, hail — Albertans face all of it,” said Liam McGuinty with the Insurance Bureau of Canada.
Experts say these events are becoming more frequent and more destructive, with insurers paying out billions in claims.
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“Because of climate change, we do expect that to continue. The frequency of intense systems moving through is only going to increase,” said Global News meteorologist Tiffany Lizee.
A recent example saw a cluster of storm systems rip up trees and damage homes across southern Alberta earlier this week.
Home insurance may be more expensive in storm-prone areas, but annual increases are being felt by all Albertans. “We’re all paying more for heightened natural disasters because the claims of the few are paid for by the premiums of the many,” McGuinty said.
Experts say rebuilding after every disaster is not sustainable.
“One, you need to make sure that homeowners are incentivized to take steps to protect their homes through retrofit programs and the like. Two, we need stop building in high-risk areas. We also need building codes that result in more safe homes. And third, we need to invest in resilient infrastructure,” McGuinty told Global.
The province says it is partnering with the insurance industry on ways to lower premiums and ensure Albertans receive fair value for their coverage.
In a statement, the press secretary for Alberta’s finance minister said a cross-ministerial working group is exploring options to reduce the cost of property insurance, with a focus on improving home resilience as a key driver of affordability.
The statement said the work is ongoing and more information will be shared once it is complete.