Fort McMurray Home Insurance Policies
Home insurance can protect the value of your home in Fort McMurray and the Regional Municipality of Wood Buffalo. The average home price in Fort McMurray is more than the average in Edmonton, the capital city of Alberta, which is located 435 kilometres to the southwest. Learn more about the factors insurers use to determine Fort McMurray home insurance rates and the policy options that are available to owners of homes in northeast Alberta.
Factors for Policy Rates In Northeast Alberta
The Fort McMurray-Cold Lake Federal Electoral District has a population of 110,163 as of 2021, with 47,245 private dwellings. Residences in Fort McMurray are exposed to a variety of risks, as indicated by the 2016 Fort McMurray fire and the floods in April 2020. The annual cost of insuring a home in this region can range from $1,600 to $3,500, which is higher than the provincial average. The following considerations factor into Fort McMurray home insurance policy rates:
- Type of residence: Rates vary for single-family homes and semi-detached homes. Insurers also set premiums based on the age, size and location of a home.
- Regional risks: Recent disasters in Fort McMurray have led to higher insurance rates in this area than in other regions of Alberta. The cost of coverage may be higher for homeowners who obtain overland flooding or sewer backup insurance or coverage for other specified perils.
- Crime rates: Fort McMurray has a total crime rate that is 169% higher than the national average. Rates of property crime are around 9,177 per 100,000 people, compared to 5,169 per 100,000 people in the rest of Alberta.
Fort McMurray Home Insurance Coverage Options
Owners of homes in Fort McMurray have many options for home insurance. A HUB International insurance broker can help homeowners decide between levels of coverage, endorsements and additional policies to protect the value of their property against common risks. Here are some of the most popular types of coverage for homes in the Regional Municipality of Wood Buffalo:
- All-perils policies: Comprehensive home insurance policies provide the highest level of coverage. These policies cover all perils except exclusions that are named in policy documents.
- Broad form policies: Broad policies cover all risks to a dwelling with the exception of named exclusions. These policies only cover named perils to its contents.
- Named perils policies: Standard or basic home insurance policies only cover named perils to a dwelling and contents. Property owners should carefully review these policies to make sure that coverage is available for common risks.
- Overland water: A growing number of insurers in Alberta cover damage due to overland flooding. The 2020 floods in Fort McMurray led to $562 million in claims.
- Sewer backup: Coverage for sewer backups is also an option for homeowners in northeast Alberta. A sewer backup endorsement or policy can be helpful in the event of rising surface water or heavy rainfall.
Any of these policy types or options can reduce the exposure of property owners to risk. Depending on the type of policy, payouts may cover the actual cash value or guaranteed replacement value. Actual cash value policies subtract depreciation from replacement value, while replacement value policies pay out enough for property owners to replace damaged or lost property.