Rental Property Insurance in Calgary: What to Expect in 2023
February 6, 2023 - Written by Greg Sanden, CAIB, Sceptre Pointe Insurance Ltd.
Insurance on a rental property is extremely important and getting the proper coverage at a competitive price is always the goal.
Over the past decade, catastrophic events have occurred, which has put pressure on the overall insurance market.
On a micro scale (Calgary and area) we have dealt with the following: A 100 year flood, 3-5 annual wind/hail storms per year, burst pipes, and tenant vandalism to name a few.
On a macro scale (Alberta, Canada, Worldwide) we have seen Quebec ice storms, BC Flooding, the Fort McMurray fire, Tornadoes, etc. The list goes on.
When we add in economic factors such as supply chain issues and increased labour costs, insurance rates have only one way to trend.
What this means to you as an insured:
Whether these claims happen at your property, or in a different City or Province, we are all impacted by these events. Due to the increased costs to pay claims, and the frequency at which claims are happening, rates continue to rise.
Being an informed landlord, and understanding what coverage options are available to you is important. Can you get a lower premium from a different insurance company? Maybe. Do they offer the same coverage benefits of this policy? Not likely. Our focus is on providing industry-leading coverage to meet the specific needs of landlords.
The benefit of hiring a property management company
A Property Management Company, such as Power Properties, can potentially save you money and provide better coverage than self-managing your rental property. They have partnered with Sceptre Pointe Insurance Ltd. to create a Master Insurance Policy exclusively for clients using their full property management services. This policy spreads the risk over their full portfolio. To maintain its viability and control cost increases, Power Properties has raised the deductibles and shifted the majority of the cost increase to properties making claims.
Not all insurance policies are created equal…
Through the Power Properties’ Master Insurance Policy, we have been able to secure the following coverage for our clients that have signed up for our full-service property management. If you are an existing client and would like a free quote for our Master Insurance policy, please reach out to your Property Manager or power@powerproperties.net. If you are self-managing or with another property management company, be sure to ask your ask about the following coverage:
Replacement Cost Coverage
As long as the rental property is insured to at least 90% of the actual replacement cost, insured losses will be paid out on a replacement cost basis.
180 Day Vacancy
Most policies severely limit coverage once a property is vacant for more than 30 days. On top of a decrease in coverage, comes an increase in cost. Power Properties’ Master Insurance Policy allows weekly inspections to maintain coverage.
Overland Water (or Flood) Coverage
This coverage is available to locations that do not fall inside a flood plain. Coverage availability is determined by the rental property’s postal code.
Tenant Vandalism
This is a standard exclusion in many policies. However, the Power Properties’ Master Insurance Policy includes Tenant Vandalism, subject to a $5000 deductible.
All Risk Coverage
Most rental property policies cover you for standard coverage. Look for an All Risk Coverage Policy, which means unless there is a specific exclusion in the wording, coverage is afforded.
Upgrade to Roof or Siding Clause
After an insured claim to the roof or siding, look for an insurance company that will pay towards the cost to upgrade to a more hail resistant material.
Download this information to read later
Do you have more questions about Rental Property Insurance? Download the Power Properties’ eBook on Rental Property Insurance to learn more.
About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Alberta for over 40 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
