Get Cheap Home Insurance in Fort McMurray

How home insurance in Fort McMurray works

Located in the Regional Municipality of Wood Buffalo in Alberta, Fort McMurray is a relatively small city, with a population of 68,002, according to the 2021 Canadian census. If you live in this area, then you’re, no doubt, familiar with the devastating wildfires that plagued the surrounding forests throughout the past decade – so much so that places near the city were issued an evacuation alert as recently as 2023. Worse yet, wildfires are only expected to get worse in the coming years.

As you may suspect, this doesn’t bode well for Fort McMurray’s home insurance premiums. And yes, they are already on the higher end of the spectrum among Alberta’s cities. That said, they are not the highest in the province. That honour belongs to several other cities – but more on that later.

While home insurance is not legally mandatory in Alberta, the recent wildfires are a good reason to purchase it. After all, home insurance will not only cover the loss or damage to your home, but the costs associated with mandatory wildfire evacuations. Plus, if you’re taking out a mortgage, your lender will likely ask you to get insurance anyway.

So, if you’re in the market for home insurance, here’s what you should know:
 

Types of home insurance in Fort McMurray

There are four types of home insurance policy you can get in Fort McMurray. Though their naming differs from insurer to insurer, they usually boil down to the following:
 

• Basic: One of the cheapest insurance types available. It protects both your property and its contents, but only from the perils explicitly listed in the policy. If the peril is not listed, then you’re not covered for it. That’s why it’s also known as a ‘named perils’ policy. It offers the least amount of coverage – if you exclude the ‘no-frills’ option, that is.
• Broad: This option is a little more inclusive, but also more expensive. It protects your property from most major perils, aside from those listed under ‘exclusions.’ When it comes to possessions, broad insurance protects only against the perils listed in the policy, just like the basic coverage.
• Comprehensive: If you want your property and possessions protected from most major perils, this coverage type will do the job. With this insurance type, if a peril is listed for either your property or possessions, then you’re not covered for it, and vice versa. Be careful though. ‘Comprehensive’ doesn’t mean you’re protected from everything. Protections for perils like overland floods and earthquakes usually have to be purchased separately.
• No-frills: Got a home that can’t be covered by typical insurance? Then no-frills coverage may come in handy. This option exists for homes that are in such a poor state that they are too risky to insure under normal circumstances. For instance, their electrical system is so out of date that it has a very high chance of causing fire. This type of insurance is best only as a temporary measure – typically for securing a mortgage and/or until you get all of its issues fixed.

What gets covered

Whether you go with basic, broad or comprehensive coverage, it will cover the following, no matter what:
 

• Property: Your property entails the home itself as well as other buildings or structures on your property, including your shed, barn, detached garage and even your garden. Be sure to check with your insurer as to what is or isn’t covered, just in case.
• Contents: These are your possessions – mainly the ones located inside your property, such as furniture, electronics and clothing. Your insurance should cover everything, aside from some of the more expensive items, like artwork or jewelry. Assess the value of such items and discuss with your insurer if you need additional coverage.
• Additional living expenses: Insurance companies will generally pay for your accommodation, travel and groceries should your home become unlivable due to a covered peril. Thes would also cover your expenses if a covered peril causes a mandatory evacuation order. We’ve already mentioned wildfires, but this can also apply to flooding – if you’re covered for it. Chat with your provider to confirm what is and isn’t covered, and for how long, since this coverage lasts only a few weeks.

Liability coverage

Your liability coverage would typically include the following:

• Personal liability: This comes into effect if someone gets accidentally injured on your property. The coverage can be between $100,000 and $5,000,000, depending on how much you pay in premiums.
• Medical payments: If you injure someone on your property by mistake, this will cover their medical expenses for up to a year from the date of the injury. The coverage may range from $1,000 to $10,000.
• Property damage: If you or a minor in your care under 12 years damages someone else’s property, then this will cover the costs. The coverage is between $500 and $6,000.

Commonly covered perils

Here are some of the most commonly covered perils by home insurers in Fort McMurray:
 

• Fire: Should your home or possessions catch fire, this will pay for replacing, rebuilding or repairing whatever ends up damaged or lost. Wildfires are becoming a big problem in Canada, with Fort McMurray in particular getting hit more severely than other cities. 2023 was the most recent year wildfires impacted the city, but it wasn’t the first time and likely won’t be the last.
• Water damage: This one is tricky, as most policies don’t fully cover what some consider to be ‘water damage.’ They often only cover damage to your home or possessions, if caused by water from things like indoor plumbing, heating, air conditioning, sprinkler or a similar indoor or outdoor appliance. Damage from sewer back-up or overland flooding is normally not covered. Your insurer may help you understand your coverage a little better, so talk to them.
• Lightning: If lightning were to strike your home and damage some of your appliances or electronics, this will cover their replacement or repairs. This shouldn’t be confused with fire, since a lightning strike can damage your possessions without causing fire.
• Theft and vandalism: If your home gets robbed or vandalized, your insurance will pay to rebuild, repair or replace the items or property that have been damaged or stolen. Here’s what you can do to protect your home from theft.
• Hail and wind: Severe wind or hail can damage both your home and possessions. Your insurance will cover the cost of repairing, rebuilding or replacing anything that gets damaged or lost. It will also cover the damage caused by flying debris or falling trees, if caused by wind or hail.
• Falling objects: If an object falls from the sky onto your property and damages either the home itself or your possessions, this will pay for the necessary replacement or repairs. Note that objects moved by landslides or snowslides are usually not considered to be ‘falling objects.’ Consult with your insurer to see what counts.

How much is home insurance on average in Fort McMurray?

According to the RATESDOTCA 2022 Home Insuramap data, the average home insurance premium in Fort McMurray is $2,528 per year, or roughly $211 per month. That’s 8% above Alberta’s annual premium of $2,339. While it’s the most expensive premium in the province, it definitely skews in that direction, unfortunately. For comparison, the average annual premium in Calgary is $2,512 and in Edmonton $1,883. Calgary’s average is certainly closer, but Edmonton’s is roughly 26% lower.

Why is this the case? Well, as we’ve mentioned Fort McMurray can be a victim of numerous calamities. Most recently, there were wildfires. But it’s also no stranger to floods and occasional earthquakes. Severe winter weather is another aspect that consistently impacts homes in the city, which in turn, has an impact on premiums.

Note that the above estimated averages are all based on the profile of a 45-year-old homeowner, who has been insured for at least 10 years and lives in a 2,500 sq ft house with brick veneer, wood frame construction, natural gas heat, a roof that is 10 to 15 years old and has the maximum available coverage for water protection. This means that your own premium will depend heavily on a variety of factors, so take these averages with a grain of salt.

Fort McMurray home insurance rates by postal code

The cheapest home insurance rate in Fort McMurray is $2,482 per year, according to the 2022 RATESDOTCA Home Insuramap. It’s associated with a postal code that starts with T9J. This district is located on the southern end of the city between two rivers: Athabasca and Clearwater. This average is only 2% below the city’s average of $2,528. The more expensive rates are $2,550 and $2,552 – attached to postal codes starting with T9K and T9H, respectively, both of which are in the northern parts of the city.

Given how small the differences between the premiums are and how small the city itself is, it’s unlikely the factors influencing them are significantly different between these districts. Minor incidents such as a slight uptick in crime or one-off perils, such as a sewer back-up, might have created the discrepancy.

Comparing Fort McMurray home insurance against other cities in Alberta 

According to the 2022 RATESDOTCA Home Insuramap, Fort McMurray is one of the more expensive cities in Alberta for home insurance. Its average premium of $2,528 is 10.6% below Olds’ average premium, which was Alberta’s most expensive city for home insurance in 2022. On the flipside of this you have Innisfail, which had a premium of $1,637 in 2022 – the cheapest one in the province and 35.2% below Fort McMurray’s average.

So, while Fort McMurray is not the most expensive city for home insurance, it definitely leans in that direction.

Top Fort McMurray home insurance companies