Weather is Pivotal for Determining Home Insurance Rates

Living in Alberta means having an understanding of the severity of the weather here, and destructive weather impacts what you pay for your home, commercial, and physical damage coverage for automobile insurance.

In fact, severe weather anywhere affects insurance premiums everywhere. The insurance industry pools their resources against the shared risks of losses to policyholders. The presumption is that the more diversified the asset pool and more widely distributed the risks of loss, the better chance that the assets will cover localised damages to a part of the risk pool.

Weather-Related Claims Continue to Rise

The problem is that damages claimed due to the weather are increasing in frequency. Not only that, but some of the weather related damages, in total, are becoming spectacularly expensive to mitigate. Did you know that Alberta was alone responsible for 62 percent of all weather related damages claims nationally in 2012? Natural catastrophes accounted for nearly three quarters of a billion dollars in losses in Alberta from events such as flooding, hail, wind and snow storms.

When large dollar figures in damages mount, everyone feels the impact. Insurance premiums will rise even if you were nowhere near the site of the weather disaster. If you do live in the vicinity of these events, naturally you are expected to bear more of the financial burden that such extreme weather generates.

Can’t Control The Weather? Control What You Can Instead

When you are stuck with the climate you contend with, the most proactive steps you can take to save money on premiums are the ones within your control. Your individual claims made history is one of the drivers of your monthly premium amounts. The fewer lifetime claims you make, generally the less you will pay for insurance coverage.

Sheltering your car will lessen your chances for hail damage. If you own a home or a business location, anti-back flow valves will help prevent a flood from pressuring sewage into your home or business through the drains. If you have a finished or unfinished basement that you know is susceptible to seepage when the water table is high, sump pumps with battery back-up can be the difference between a mild annoyance at what the weather is doing and your home becoming temporarily or permanently uninhabitable.

If you live at a prominent point in the area and it is becoming inescapable that thunderstorms are increasing in frequency or intensity, it could be a sign to install a lightning rod to ground your home and prevent a fire or damage to your electrically powered appliances and devices.

Shopping Around Still Works

Bow Valley Insurance has been serving the insurance needs of Alberta for 35 years. As an independent broker we are able to offer excellent products from several respected providers, and are always looking for ways to help you save on your coverage.

Comparison shop for new or consolidated home owners insurance with us here at Bow Valley Insurance. We offer free no obligation home insurance quote for all types of coverage.