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Is home insurance becoming costlier in Alberta in 2026?

Yes. Home insurance is becoming costlier in Alberta in 2026. The average premium in Alberta went up 11.9% YoY in Q2 and 2.0% versus Q1, as indicated by the Applied Rating Index. On the other hand, the national average went up only 5.8% YoY in Q2 and 0.8% versus Q1.

Types of home insurance coverage in Alberta

There are four types of coverage:

Comprehensive: The highest level or most coverage you can purchase. It insures the building and its contents against all risks or perils, except for ones that are specifically excluded. For example, if your policy names earthquakes and sewer back-ups as excluded perils, you would not receive coverage for those events.

Broad: Offers coverage for building and some of its contents. It only extends to coverage of contents for named peris. Usually, the insurance is covered for things like fire, lightning, smoke, theft, explosions, electrical current, aircraft or vehicle impact and falling objects.

Basic: This type of policy provides a minimal level of coverage for your home, covering only stated perils like fire, wind, theft and vandalism. Don’t count on basic insurance to cover anything beyond the perils named in your policy.

No-frills: Offers basic coverage for properties that are hard to insure (e.g., homes that have numerous structural issues). Forest fires are covered by home insurance policies, and that also covers some expenses you might incur if you’re ever forced to evacuate your home. You may need to purchase additional insurance coverage, called an endorsement, for overland flooding. Endorsements for flooding were once difficult to purchase, but insurers are beginning to offer it.

Personal liability: This part of your Alberta home insurance policy protects in cases where you are found legally responsible for unintentionally causing injury to another person or loss or damage to their property

Common optional coverages and endorsements: Also known as riders or add-ons, optional coverages protect you from additional events that can provide greater protection, usually at an additional cost. Some endorsements can include:

• Sewer backup
• Home-based business
• Inland flooding
• Guaranteed replacement costs
• Valuable items (including jewelry or art)
• Identity theft

Exclusions: Home insurance exclusions are specific types of damage or loss that your Alberta home insurance won't cover.

Risk factors for homeowners in Alberta

Alberta is a large, geographically diverse province susceptible to extreme weather events year-round. So far, 2023 has been a terrible year for raging forest fires in Canada, especially in Alberta. The province is near its record for hectares burned and has suffered devastating losses and evacuations.

In 2022, severe weather caused $3.1 billion in insured damages. Alberta made up $135 million of that total.

Municipal governments have outlined some of the following perils as ones that Alberta homeowners should be especially mindful of.

Flooding

Flooding is a significant concern in Alberta. There's a lot of development on the banks of the Bow and Elbow rivers, both of which flow through Calgary, so even residents of urban neighbourhoods need to be on the alert.

There are three types of floods that Albertans may be exposed to:

Overland flooding

Overland flooding occurs when water overflows from creeks, streams, rivers or lakes. It can creep into backyards, garages, basements, or the streets. In Alberta, this happens during the spring thaw, when frozen catch basins, storm drains, and piled snow begin to thaw and melt, accelerated by spring rains. Regions at highest risk: Most of southern Alberta. Communities that have been hard hit recently include the City of Calgary, the Municipal District of Taber, Lethbridge County, Vulcan County, Willow Creek, and Forty Creek County.

Basement seepage

Basement seepage happens when the level of the underground water table under a home rises. Water seeps through the soil and eventually into your home's foundation through cracks, holes, or joints. Regions at highest risk: All of Alberta — all homes are technically at risk for basement seepage.

Sewage backup

Sewage systems can be overloaded when overland flooding occurs. It can force sewage back through the sewer line and into your basement.

Regions at highest risk: All of Alberta — anyone's basement is at risk for sewage backup.

Forest fires

Increased development and urban sprawl have meant that local governments in Alberta have had to suppress naturally-occurring wildfires. It leads to an overabundance of old vegetation, a considerable fire risk. Development paired with a changing climate means large-scale forest fires are fast becoming normal every summer in Alberta.

Regions at highest risk: Communities within the Boreal forest region of Alberta — which covers 58% of the entire province — are highest at risk for forest fires. Population centres include Fort McMurray and Fort Vermillion.

Extreme cold

Alberta winters are frigid, and frozen water lines and pipes are a common occurrence. Thawing pipes can burst, creating a flood risk.

Regions at highest risk: Arctic air masses deliver sub-zero temperatures to every corner of Alberta. Temperatures can dip to -46C to the south and -54C in the north.