this year are likely to lead to another increase in Alberta insurance rates. The 2016 blaze forced more than 80,000 people from their homes, and is said to be the costliest disaster for insurers in Canadian history. Read on to learn more about why you shouldn’t be surprised to see your premiums or deductibles go up this year.
Why The Increase?
While there is no single event that will, in itself, trigger premium increases, a disaster of this magnitude can definitely start to deplete the reserves that insurance companies keep for these type of unanticipated events. A depleted reserve means deductibles and premiums may need to be increased.
Another reason why Alberta insurance prices are on the rise is due to the simple fact that in the past five years, we have had a high number of natural disasters that have led to a dramatic increase in catastrophic losses claims in Alberta. At a basic level, Alberta is now seen has a higher-risk province, which translates to higher premiums.
What Does Insurance Cover In These Situations?
Almost all home insurance policies cover wildfire damage. If you lose your home to fire, you can expect your insurance to cover the cost of rebuilding your home, as well as some coverage of living expenses. Exactly how much of a payout you’ll receive is based on a couple of factors, including the type of damage, the value of goods in the house and the policy type.
What Can We Do?
Natural disasters happen. Insurance companies are prepared for events like these, but premium increases are almost inevitable when there is a string of events that deplete insurance reserves. It’s important for governments to focus on loss prevention, whether that means building in less risky areas, or building safeguards in municipalities. By reducing our vulnerability, insurance rates will go down.
Looking For Home Insurance?
ARC Insurance works to get you the best rates on home insurance. Our personalized approach will ensure that you leave with the individualized coverage you need. If you’re looking for home insurance, give our expert team a call — we’re always happy to help!