Homeowners in Northeast Calgary are grappling with a burgeoning crisis as home insurance premiums soar, deductibles climb, and policies face outright cancellation. The situation, described by some residents as feeling like a second mortgage, is leaving many families vulnerable as another hail season approaches in what is often dubbed “Hail Alley.”
According to LiveWire Calgary (LWC), residents in postal codes like T3J and T3N are experiencing massive insurance premium increases. Harlin Kaur, a homeowner with two properties in the area, reported her monthly premiums jumping from $180 and $160 to $580 after filing a $45,000 hail damage claim in August 2024. More than 15 providers reportedly rejected her applications or quoted her up to $21,000 per home.
“Because of the number of claims that they had in the Northeast last year, they are declining any policies with the T3J, T3N postal codes,” Kaur told LWC, recounting a conversation with her insurance broker.
Online community groups for neighbourhoods such as Redstone and Skyview Ranch are abuzz with warnings of $10,000 hail deductibles and premium increases of up to one-third in a single year. One individual reportedly had to sell their home due to their inability to secure affordable insurance.
The Insurance Bureau of Canada (IBC) attributes the tightening market to repeated hailstorms, which have rendered this part of Calgary a high-risk zone for insurers. Hail-related claims in Calgary have exceeded $5 billion over the last three years, with the August 2024 storm alone marking the country’s most expensive weather event of that year.
Aaron Sutherland, vice president of the IBC, indicated that insurance companies are under pressure to reduce their risk exposure. “Some carriers may be looking to reduce their coverage options or change their coverage options,” he stated, as reported by LWC. The intensification and increased frequency of extreme weather events, linked to the climate crisis and the burning of dirty energy sources, are exacerbating these challenges, leading insurers to reduce or drop coverage in high-risk areas.
City councillor Raj Dhaliwal characterized the issue as a crisis, emphasizing the untenable situation for residents when insurance costs surpass mortgage payments. “Imagine if your insurance is more than your mortgage. You might as well sell the house and go rent,” Dhaliwal told LWC. “It’s ridiculous.”
In response to the crisis, the IBC is advocating for Alberta’s provincial government to update building codes with more stringent hail resistance requirements. “There is no longer any excuse to continue to put Albertans in harm’s way,” Sutherland asserted. Calls are also being made to reinstate programs such as Calgary’s now-defunct Resilient Roofing Rebate. While the province has updated its building code with tougher minimum standards for extreme weather risks, many of the most effective upgrades remain optional and costly.
The IBC advises residents to explore various providers, given the differences in coverage and deductible structures. Meanwhile, concerned residents are organizing a press conference with Dhaliwal to demand more affordable insurance and decisive provincial action.
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