What should I know about home insurance in Alberta?

Categories: Housing, Insurance 

If you rent or own a home in Alberta it is a good idea to think about getting home or contents insurance. If you own your home you should almost certainly have home insurance.

If you own your home in Alberta you can take out insurance on your home and all of your possessions inside of it. This is generally called homeowner’s insurance. Some of this insurance usually covers liability - if someone is hurt in your home your insurance will cover all or most of the medical or legal costs that you would otherwise have to pay.

If you rent your home, you can take out insurance on your possessions. This is called renter’s or tenant’s insurance. (Your landlord should have an insurance policy on the home itself, but it will not cover any possessions which you own in the house.

When you take out insurance you pay a premium. A premium is a fixed fee, usually paid monthly, that an insurance company uses to make money and pay out claims. The premium you will pay is calculated by your insurance company based on the risk that you present. For example, an older house with old wiring, or a house with lots of valuable items in it will have a higher monthly premium than a newly built home. This is because an old house presents a greater risk to an insurance company.

You can sometimes reduce the amount of money you pay for your premium by agreeing to pay a deductible amount. A deductible amount means that you will pay for the first portion of any losses and your insurance company will pay for any claims over the deductible amount. This can help keep your premium lower, but will mean you could be responsible for some payments if you need to make a claim.

You make a claim against any damage or loss that happens to your insured possessions or property. For example, if a $200 television is stolen from your home, you can make a claim for $200 to your insurer.

Insurance policies are available from banks, financial companies, as well as specialized insurance companies.

Tips to help when dealing with insurance companies

In order to make the claims process easier, if you ever need to make one, there are a few things you can do.

  • Always keep receipts for any major item you purchase. This will help prove that you own an item.
  • Take pictures when you move into a property. This will help prove the original condition of your property.
  • Keep dated copies of any correspondence you have with your insurance company and keep dated notes of any conversations your have in person or over the phone with an agent.

Insurance companies in Alberta are regulated by the Office of the Superintendent of Insurance. Always ask specific questions of your insurance agent before you buy a policy.

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