Why Your Home Insurance Is Up $1,000 This Year — And What You Can Do About It

If you opened your renewal this year and saw a massive increase in your home insurance, you’re not alone. We’ve been getting a lot of calls from homeowners across Alberta who are suddenly paying hundreds more—sometimes over a thousand—without any major changes to their homes.

And in some cases, they’re paying more for less.

Let’s take a minute to talk about what’s happening, why it’s happening, and what you can actually do about it.

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So, why the sudden increase?

There’s a lot going on behind the scenes that’s causing rates to rise across the board—here’s what’s driving it:

• More severe weather events. We’ve seen a rise in flood, hail, and wildfire claims across Alberta, and insurers are adjusting for that increased risk.

  
  

• Higher rebuild costs. Materials and labour have gone way up. Even if your house hasn’t changed, your insurance company may have updated your rebuild value to keep up with inflation.

  
  

• Water damage claims are rising. Sewer backup, ground water, and overland water are now some of the most common—and expensive—home insurance claims. In response, some insurers are limiting this coverage or increasing deductibles.

  
  

• Reinsurance is more expensive. This is the insurance that insurers buy for themselves, and it has gotten significantly more costly in recent years. That cost eventually trickles down to consumers.

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What we’re seeing at renewal:

Many homeowners have told us they were surprised to find their deductible increased, their water coverage reduced, or their premium dramatically higher—without being contacted or clearly notified of these changes. Sometimes it’s not obvious unless you really read the fine print.

That’s where a broker can really help.

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What can you actually do about it?

Here’s what I’d recommend if your renewal caught you off guard:

Don’t just focus on price. It’s easy to get caught up in saving a few bucks, but what really matters is what you’re covered for. We’ve helped a lot of clients switch into policies that not only cost less—but offer better protection, especially when it comes to water coverage and matching materials.

Look at your deductible. We’ve run quotes where a $2,500 deductible only saved about $100 a year versus a $1,000 deductible. That means you’d have to go 15+ years without a claim to come out ahead. Doesn’t always make sense.

Ask questions—lots of them. You should know what coverage you actually have. If you don’t feel like you’re getting clear answers, it might be time to get a second opinion.

We’re a small brokerage here in Sherwood Park, and our goal has always been simple—make insurance make sense. We’ll walk through your coverage with you, explain where things stand, and if we can improve your situation, we’ll tell you how. And if you’re already in a good place? We’ll tell you that too.

No pressure. No gimmicks. Just honest advice.

Give us a call or send an email if you want to chat about your home insurance.

Mike Hart & Team

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📞 780-665-6632

📧 mhart@switchinsurance.ca