For Edmonton homeowners who hold a mortgage, having affordable home insurance is a necessity. This is because banks and mortgage lenders want to know borrowers (i.e. homeowners) have a back-up plan in case one of three unfortunate events happens: (1) something happens to the homeowner’s home (either repairable damages or a total loss), (2) someone is inadvertently injured while on the homeowner’s property, or (3) the homeowner accidentally causes damage to another person’s property. A basic home insurance policy will cover an Edmonton homeowner in any of those three scenarios, and will — by extension — ensure the homeowner will remain financially fit to continue servicing their mortgage.

On the other hand, if you own your Edmonton residence outright (i.e. you’ve paid off your mortgage), you are not required by any level of government in Canada to hold a home insurance policy. However, when you compare the cost of an annual insurance policy — usually somewhere in the $800 to $1,200 range — to the value of your home and its contents, it becomes clear that protecting your assets is a wise move. Surex strongly recommends home insurance for all Edmonton homeowners — just be sure to compare insurance companies with the best insurance broker for affordable home insurance!

The top Canadian home insurance companies that cover Edmonton use a range of factors to determine home insurance rates. Here are some of the most common variables taken into consideration:

• Home replacement cost: Home insurance is predicated on the cost to replace your home as it currently exists (factoring in home size, home type, home age, and materials used), not the amount your home would fetch on the real estate market. For example, if your home would cost $275,000 to rebuild — but it’s worth around $400,000 on the market — your home insurance policy would pay you $275,000 (i.e. the replacement cost) in the event of a total loss, not the (higher) market value.
• Type of coverage selected: With home insurance, the more comprehensive or specialized the type of coverage you add to your policy, the higher your premiums will be.
• Cost of belongings: Home insurance in Edmonton covers your home and its contents, therefore if you have high-value items, such as jewelry or expensive electronics, your rates will go up (or in some cases, you will be required to purchase additional ‘high-value’ coverages).
• Home improvements: Renovations, extensions, and improvements will generally increase the value of your home, thus raising your home replacement cost and ultimately your premiums.
• Neighbourhood crime rate: Living in a safe area will usually lower your premiums, as your home will be viewed as less likely to encounter insurable damages. The opposite is true for high-crime areas in Edmonton.
• Type of home in Edmonton: The type of property you’re insuring makes a difference to your premium. Condos, detached houses, townhomes, semi-detached houses, rental properties, or seasonal residences will all fetch different rates.
• Claims history: If you’re a customer that has a track record of making multiple claims, your home insurance company will likely view you as high-risk, which will therefore increase your premiums. Try to avoid making claims, especially minor ones.
• Home construction: Insurance companies look at factors such as roof condition, plumbing, age of home, materials used, electrical wiring, and heat source.
• Deductible: As with auto insurance, if you have a higher deductible, your rates will be lower. But be prepared to pay more out-of-pocket if you file a claim.
• Safety and security: Factors such as proximity to fire hydrants, proximity to police stations, carbon monoxide detectors, fire alarms, and home security systems can result in a discount to your home insurance premium.
• Home usage: If you’re running a small business out of your home, it could have an impact on your coverage needs and your annual premium.

Edmonton homeowners can rest easy knowing that basic home insurance policies cover a range of threats and damages to their home, condo, rental property, seasonal residence, or townhouse. Here are some of the perils that are typically covered by home insurance in Edmonton:

• Weather damages (i.e. strong winds, hail, tornadoes, earthquakes, hurricanes)
• Fire and smoke damages
• Theft and vandalism
• Damage from explosions
• Damage from frozen or burst pipes
• Damage from land-based or airborne vehicles
• Damage to other structures on your property (such as sheds or garages)
• You will be covered against injuries incurred by someone else while on your property
• You will be covered against damages you accidentally cause to someone else’s property
• Coverage for the costs of temporarily residing somewhere else while your property is either being repaired or replaced (i.e. hotel stay or short-term rental)