Calgary Home Insurance

Deductibles

When considering your Calgary Home Insurance needs, we encourage you to send us as many questions you have about any of your home insurance needs. Our most common question we receive starts our Question series below:

Question: “What is a deductible is and what it means to pick different kinds of deductibles?“

A deductible is the portion of the loss that you must retain and pay before your home insurance policy will respond.

For example, if your $2,500 laptop is stolen and you have a $1,000 deductible, your home insurance provider will pay $1,500 towards the replacement of your stolen laptop.

Most home insurance providers offer deductibles ranging from $250 to $5,000.

Go for the Highest Deductible Possible

As a general rule of thumb, you should select the highest deductible amount that you feel comfortable with. The reason is that the higher the deductible you select, the lower your home insurance premiums will be.

It’s important to note that often home insurance policies will have several deductibles. For example, there may be a standard policy deductible, a deductible for glass losses, and a deductible for earthquake losses. Again, most providers will offer a range of deductible for you to choose from.

Earthquake Deductibles

In the case of earthquake deductibles, be prepared that they tend to be significantly higher than all other types of deductibles. If an earthquake deductible is referred to a percentage, then it likely means a percentage of your total coverage amount, not a percentage of the loss you suffer.

Rental Suites and your Calgary Home Insurance

Question: “We’ve decided to rent out our basement suite to help us pay our mortgage faster. Is there anything we need to worry about, in terms of our home insurance?”


With the price of real estate today, it’s very common for people to have basement suites as a way to help pay their mortgages. What most people don’t know is that their entire home insurance policy could be voided if they don’t disclose this information to their provider.

You see, your home insurance provider agreed to insure your home as a single- family house. When you have two or more families in the house, it significantly changes the risk profile of your house. So, you need to advise your insurance agent that you have a basement suite.

Lost Rental Income Insurance

Because basement suites are so common, you likely won’t have much trouble getting home insurance. You’ll just need to answer a few questions. Your insurance agent will also tell you about some important coverage you may want to buy, like insurance for landlord’s property or lost rental income.

It’s also important that you understand that your home insurance policy will not protect your tenants or their property. They need to have their own tenant insurance policy.

Check out a useful home insurance study. For more information or to subscribe to the Home Insurance Calgary newsletter, visit Alberta Home Insurance . See  Calgary Home Insurance Video on Sewer Backup and Home Flooding; the Calgary Home Insurance Video on Basement Rental Suite and our Coverage; or, the Home Insurance Calgary video on Flooding and Windstorm Damage.