Alberta Insurance Companies Tighten Hail Coverage, Push for Resilient Construction

📅 2 weeks ago

Alberta's insurance landscape is shifting as companies refuse coverage and increase premiums for homes not built with hail-resistant materials, prompting builders to adapt or face market consequences.

In Alberta, insurance companies are increasingly refusing coverage, raising premiums and deductibles in high-risk areas such as Calgary, known as Hailstorm Alley, unless new residential homes or retrofitted properties utilize hail-resilient materials. This situation has sparked a debate on whether the construction industry is aligning with the insurance sector's demands for insurable structures. Large volume builder Homes by Avi has taken the initiative to incorporate hail-resistant roofing materials classified as Class 4 in its newly constructed single-family detached homes across Alberta. Aaron Sutherland, vice-president for Pacific and Western at the Insurance Bureau of Canada (IBC), expressed hope that this move would set a precedent for broader adoption, especially in the absence of mandated building code changes or city bylaws. Hailstorm Alley encompasses southern and central Alberta, with Calgary holding the title of Canada’s hailstorm capital, alongside affected regions like Red Deer and Olds.
Sutherland highlighted the alarming statistics following a severe hailstorm in the Calgary area during the summer of 2024, which resulted in over 130,000 insurance claims and incurred damages exceeding $3 billion. Over the past five years, the insurance industry has faced claims totaling around $6 billion due to hail-related damages. Sutherland emphasized that roofing costs represent a significant portion of these figures and warned that insurance coverage and premiums are under increasing strain. In high-risk regions like Hailstorm Alley, he noted, it is not a matter of if another storm will occur, but rather when and where.
The lack of city bylaws or provincial building codes mandating the use of hail-resistant materials has left insurers cautious. According to a blog from Intact Insurance, the insurance landscape has drastically shifted, with standard $1,000 hail deductibles in Calgary now ranging from $2,500 to $5,000. Premiums surged by 15% to 25% in 2026. Some insurers have even removed hail coverage from basic homeowner policies, making it an optional add-on. Following the catastrophic 2024 storm, many homeowners reported non-renewal of their policies from carriers unwilling to insure properties in the highest-risk postal codes. The province’s insurance regulator has proposed increasing deductibles on properties lacking hail-resilient construction to as much as $10,000.
The 2026 Insurance News article highlighted a survey conducted by the provincial regulator among 38 Alberta residential insurers, which revealed that three insurers had established full coverage blackout zones in the highest-risk areas. Chelsea Lum, executive director of the Alberta Allied Roofing Association, indicated that after the 2024 storm, high deductibles are becoming commonplace as insurers navigate financial challenges. She pointed out that manufacturers of roofing products like Malarkey and Euroshield, which offer Class 4 materials, are gaining visibility as hailstorms continue to threaten properties.
Sutherland stated that some insurers might offer savings of up to 50% on premiums for homes built with hail-resistant materials. In late 2025, Avalon Master Builder, in collaboration with Aviva Canada, the Institute for Catastrophic Loss Reduction (ICLR), and the Canadian Home Builders Association (CHBA), began a pilot project aimed at integrating resilience measures into new multi-family buildings in southern Calgary. Amie Blanchette, CEO of BILD Calgary Region, confirmed that organizations like BILD Calgary Region, BILD Alberta, and CHBA National are working together on building code revisions. She noted the positive development that consumers now have access to innovative building products, with cities like Calgary promoting resource guides on hail-resistant materials.
Stacey Rector, Calgary’s climate resilience and adaptation leader, acknowledged the rising concerns over hail damage and increasing insurance costs. In January, Calgary launched the Hail Resilience Improvement Network (HRIN), a voluntary initiative designed to connect contractors, manufacturers, insurers, and researchers to share innovations, best practices, and resilience programs. Rector expressed hope that the industry would collaborate to enhance construction resilience against hail.
Alan Speidel, territory manager at Malarkey Roofing Products, reported a 100% increase in demand for Class 4 roofing products, as more contractors opt for these materials. He noted that insurance companies are driving this change and speculated that Class 4 products might soon be incorporated into provincial building codes for high-risk areas. Speidel emphasized the dilemma facing the construction industry: whether to invest in more expensive hail-resistant materials, which could reduce insurance costs and damage claims, or to focus on lower-cost housing to attract buyers. "It is a conundrum," he stated.

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