Stronger building materials and resilience measures can reduce insurance costs and improve coverage for homeowners
Homeowners in areas at high risk of hailstorms who invest in hail-resistant roofing and siding can reduce their homeowner’s insurance premiums by up to 50%, according to a new study conducted by MNP LLP (MNP) for Insurance Bureau of Canada (IBC).
“The frequency and severity of hailstorms in Alberta are on the rise, and so are the numbers and costs of insurance claims in the province,” said Aaron Sutherland, Vice-President, Pacific and Western, IBC. “In response to these trends, we’ve seen a dynamic shift in how the insurance industry is structuring its products to reward policyholders who make practical investments in hail-resistant materials by offering them reduced insurance costs and improved coverages.”
Hailstorms in Alberta have caused $6 billion in insured damage over the past five years. In 2024, a single hailstorm in Calgary caused more than $3 billion in damage, becoming the second-costliest natural disaster in Canadian history.
To better understand how these trends are affecting homeowner’s insurance premiums, and whether stronger building materials and community resilience measures could help reduce costs, IBC engaged MNP to review hail risk, insurance market impacts and resilience opportunities in Alberta.
Key findings of the MNP study
Hail risk is highest in the City of Calgary and nearby areas.
Insurance coverage for hail remains widely available, though the growing risk, frequency and cost of severe hail events have resulted in coverage changes and premium cost increases. As a result, hail can account for 30% to 68% of the total homeowner’s insurance premium in high-risk areas.
Hail-resistant roofing and siding can help reduce the risk of damage. When a homeowner adopts these measures, they can:
Reduce their premium by up to 50% if they live in a high-risk area
Lower their coverage’s deductibles
Increase the availability of full replacement costs on roofs, as older roofs might only have coverage for actual cash value (depreciated value)
Remove or reduce coverage caps.
An increasing number of insurers now offer financial support to help pay for the installation of resilient roofing and siding after a claim.
Recommendations for governments
For years, insurers have been calling on all orders of government to better protect Canadians from natural disasters. For areas of Alberta that are prone to hail, that protection must include efforts to:
Mandate the use of hail-resistant materials in all new construction in high-risk areas
Provide homeowners with financial support for retrofits to enhance property resilience
Support municipal investments in community resilience
Revive Calgary’s Resilient Roofing Rebate Program, which provided homeowners with financial assistance to retrofit their homes to protect them from hail damage
Improve hail notification services so that residents are better able to move vehicles out of harm’s way when a storm is approaching.
“Alberta’s insurers are focused on being part of the solution to reduce the frequency and severity of hail damage in the province,” said Sutherland. “Building more resilient homes and communities will not only better protect Albertans, but it will also save money moving forward.”
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