Blog

/ / /

Alberta Renters Insurance Guide: What You Need to Know

Imagine you’re settling in for a cozy evening in your Edmonton apartment when, oops, the upstairs neighbour’s bathtub overflows and water starts seeping through your ceiling. Or picture coming home to your Calgary rental after a weekend away to discover someone’s broken in and your laptop and TV are gone.

Without renters insurance (also called tenant insurance), you could be facing thousands of dollars in losses, money that most of us don’t have just sitting around ready to spend on unexpected disasters.

The great thing about renters’ insurance is that it’s surprisingly affordable. Alberta renters typically pay around $25-$35 per month. That’s less than what most of us spend on coffee each week, but it provides protection that could save you thousands.

Alberta’s Unique Risks for Renters

Extreme Weather Events

In recent years, we’ve seen some serious weather-related disasters that have affected both homeowners and renters. The Insurance Bureau of Canada reported that 2024 was the most expensive year on record for insurance payouts across Canada, with insurers paying out $8.55 billion following devastating weather events, including wildfires that destroyed hundreds of homes in Jasper.

For renters, severe weather can mean:

Damage to your belongings from water, smoke, or fire
Temporary displacement if your building becomes uninhabitable
Unexpected costs for emergency accommodations

What’s Typically Covered by Renters Insurance

Most standard tenant insurance policies in Alberta include:

Your Belongings:

Fire or lightning
Smoke damage
Water damage (like a burst pipe)
Windstorm or hail
Theft, including damage from a break-in
Vandalism
Falling objects

Personal Liability Coverage:

This is a big one that many renters overlook. It protects you if someone is injured in your rental unit or if you accidentally cause damage to someone else’s property. SGI Canada’s policies typically include at least $1 million for this, which can cover court costs, legal fees, and voluntary medical payments or property damage payments (up to certain limits). Limits are available up to $5,000,000, and it’s actually the most affordable coverage on the policy.

Additional Living Expenses:

If your rental unit becomes uninhabitable due to a covered loss (like a fire), this coverage helps pay for your necessary and reasonable increased living expenses, such as hotel stays and meal costs, for a certain period (often up to 30 days for things like mass evacuations).

What’s Not Automatically Included (But Available to Add)

For complete protection, especially in Alberta’s sometimes challenging environment, you might want to consider these optional coverages:

Sewer Back-Up: Protects your belongings from damage caused by backed-up sewers
Overland Water: Covers damage from freshwater flooding, like when heavy rainfall causes water to enter your rental unit
Home Systems: Coverage for sudden breakdowns of appliances and equipment
Glass Buy-Down Deductible: Lowers your deductible specifically for glass-related claims
Scheduled Items: Higher limits of coverage for valuable collections, jewelry, or instruments

Interested in starting a quote? Click here to Calculate your Rate ←

Major Insurance Claims in Alberta:

The Calgary Hailstorm

In August 2024, Calgary was hit by a devastating hailstorm that resulted in approximately $3.25 billion in insured losses, making it the second-costliest natural disaster in Canadian history. The storm damaged nearly 60,000 homes across Calgary and surrounding areas, with many properties suffering severe damage to roofs, siding, and windows.

The hailstorm also caused substantial auto damage, with insurance claims for vehicles alone approaching $1 billion. The damage was so intense that about half of the affected vehicles were deemed total losses. The immense volume of claims, more than 130,000 in total, strained the availability of contractors, home builders, and building supplies throughout the region.

This catastrophic event highlighted how quickly severe weather can cause billions in damage, affecting not just homeowners but also renters whose belongings were damaged when hail broke windows or caused water to enter their rental units.

Source: https://canadianunderwriter.ca/news/industry/where-calgarys-post-hailstorm-claims-efforts-stand/

The Jasper Wildfires

In 2024, a devastating wildfire burned down approximately one-third of the town of Jasper, Alberta, resulting in an estimated $1.2 billion in insured damage. This massive disaster destroyed 358 properties and displaced hundreds of residents, many of whom were renters.

The recovery process has been particularly challenging, with only 56 of the destroyed properties receiving necessary permits and approvals to begin rebuilding as of July 2025, nearly a year after the fire. This slow recovery has caused significant concern about residents exhausting their additional living expenses coverage while waiting to return home.

For renters in particular, these kinds of delays can be financially devastating without proper insurance coverage. Many found themselves needing temporary housing for much longer than anticipated, highlighting the importance of understanding your policy limits for additional living expenses.

Source: https://canadianunderwriter.ca/news/claims/latest-delay-in-jaspers-rebuild-has-insurers-calling-for-a-disaster-recovery-agency/

The Fort McMurray Fire Evacuation

The 2016 Fort McMurray wildfire remains Canada’s costliest natural disaster, with approximately $4 billion in insured damage. The entire city of 88,000 residents was evacuated as the massive blaze destroyed thousands of structures.

What made this disaster particularly challenging was the long-term displacement of residents. Many people were unable to return to their homes for months, and the rebuilding process stretched on for years. Even two years after the fire, in 2018, about 900 insurance claims remained unresolved.

For renters with additional living expenses coverage, this insurance proved invaluable, covering costs for temporary housing, meals, and essential items during the extended evacuation period. Without this coverage, many would have faced financial hardship on top of the emotional trauma of being displaced from their homes.

Source: https://canadianunderwriter.ca/news/claims/is-fort-mcmurray-still-insurable/

The information provided in this article is intended for general informational purposes only and should not be construed as professional advice. This information should not be used as a substitute for personalized guidance from qualified professionals.

Thanks for reading our article; I hope you enjoyed this month’s topic on Renter Insurance for Alberta. Here are some more ways to access more insurance information and tips: