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Factors You Need to Know That Affect Your Home Insurance


Home insurance premiums can be quite tricky to deal with. For homeowners across Alberta, sudden increases in insurance premiums can definitely cause frustration, especially since you need to take into account your living expenses and utility bills. What’s strange is that some insurance terms and premiums will still differ from someone else’s, even with similar homes.

With that being said, justifying the amount of your premium given by insurance companies and knowing why you don’t have access to some options can be quite tough. For this reason, many homeowners work with professional insurance brokers, so their policies are communicated clearly, and all factors to consider are laid out.

If you’re keen to understand more about your home insurance policy, you’re taking the right step into knowing what’s best for you financially. Below is some critical information you should know that could affect your home insurance. Let’s take a look!

How Is Home Insurance in Alberta?

When you’re getting home insurance, you need to consider a plethora of elements to protect your home. Essentially, you need to consider your home’s size, composition, closeness to the water, and many more — these affect your insurance rates and prices.

However, knowing the different factors that affect home insurance can give you an edge when choosing the best coverage for your home.

Factor #1: Distance from Fire Stations and Hydrants

When you’re dealing with fire, and your house is burning, every second counts. That’s why when your property is closer to a fire station or hydrant, you’ll generally have lower insurance rates.

Seeing as the extent of fire damage can be drastic in a short window of time, having first responders close to you is ideal. Because of this, fire protection rates for urban homes are much better than rural ones.

Factor #2: Distance from Bodies of Water

If your home is near bodies of water, you’ll most likely have higher insurance rates since you’re more at risk for flooding. With that, you may want to speak to insurance companies and look for flood insurance policies that will work best for you.

Flood insurance is ideal since it protects you from various types of flooding. Trust us — if your home gets affected by a flood and you don’t have coverage for that, you’ll suffer from major financial losses.

Factor #3: Your Roof’s Age and Condition

Many don’t know that your roof’s age and condition matter when it comes to insurance policies. Insurers need to see that your roof has been updated within the last 18 years to help reduce your insurance premiums.

Factor #4: Credit Score

There’s no denying that your financial health plays a huge role when it comes to your home insurance. With that, insurers always check your credit history so they can mitigate the risk of non-payments. Know that you’ll most likely get better insurance rates when you have a good credit history since insurers know you’re reliable.

The Bottom Line: Choosing the Right Insurance Company to Cover Essential Factors

These are only a few of the factors that can affect your home insurance. To understand your coverage to ensure that you’re getting the best insurance premiums and deals for your lifestyle, it’s ideal to speak with reliable insurance companies, so you’re covered and protected, eliminating the risk of financial losses in the future.

How Can We Help You?

Navigating through the complexities of insurance can be quite daunting, but it doesn’t have to be, thanks to Direct Line Insurance.

Our insurance company has been taking care of hundreds of homes, autos, farms, and businesses. Besides that, we also offer AB Registries services and ATB banking services, helping you out with your financial needs.

Learn more about how we can protect you and your family today!

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