Alberta home insurance premiums have jumped nearly 400% since 2005
Extreme weather has driven home insurance costs up in Alberta over the past five years, and costs have nearly quadrupled since 2005.
A new report from Statistics Canada shows that Alberta home insurance premiums rose 55.8 per cent between December 2020 and December 2025, the highest increase among all provinces, and above the national average of 38.6 per cent.Ā
Over the longer term, the province has seen home insurance premiums climb by 391.6 per cent since 2005, also the largest increase in Canada, and way over the national average of 174.4 per cent.Ā
The report highlights that extreme weather has become a dominant driver of insurance losses across Canada, with Alberta among the most affected regions. In just 2024, a hailstorm that slammed Calgary caused an estimated $3 billion in insured damages, and the Jasper wildfire the same year added another $1.1 billion in losses.Ā
Statistics Canada
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These events contributed to one of the costliest years on record for extreme weather-related insurance claims in Canada. “Until 2024, 2016 was the costliest year on record, costing $6.2 billion, mainly attributable to the Fort McMurray wildfire, also impacting Alberta,” the report read.Ā
Alberta’s elevated exposure comes from a mix of hazards throughout the province.Ā
“The Prairies tend to be impacted most particularly around Calgary. The region surrounding Calgary and north, in the direction of Edmonton, is highly prone to hail and tornado activity. While other areas such as Red Deer face similar weather risks, Calgary’s larger population and higher housing density make it more vulnerable to significant damage and claims.”Ā
The report also noted that each year from 2020 to 2025 ranked among the top 10 costliest years. Despite 2024 being a more severe year for extreme weather, insurance costs stayed high in 2025, as insurers continued to raise premiums to meet rising cost pressure.
The data also caught the attention of the Insurance Bureau of Canada, with Liam McGuinty, vice president of federal affairs at the Insurance Bureau of Canada (IBC), saying that natural disasters are “reshaping the home insurance landscape for Canadians from coast-to-coast” with “increased frequency and severity of extreme weather events driving up claims costs and putting pressure on home insurance premiums across the country.”
You can find the full report online.