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Renters insurance fine print bit me after a pipe burst in Edmonton | Alberta Homeowners - Free To Speak

Renters insurance fine print bit me after a pipe burst in Edmonton

Last January a pipe behind my kitchen sink burst while I was at work in Edmonton. My landlord's insurance covered the building, but my stuff on the floor, like my couch and speakers, got soaked. Turns out my renters policy had a 5% deductible tied to the claim amount, so I paid $700 out of pocket for maybe $2,000 in coverage. I called three brokers after that and every one said most people ignore the fine print on water damage. Is that just an Alberta thing, or have you guys been burned by those hidden deductions too?

3 comments

3 Comments

phoenix_bailey1mo ago

Not sure I agree that a 5% water damage deductible is standard everywhere, man. I've seen plenty of policies up here in BC where that kind of clause is buried or negotiable if you push hard enough. It feels like brokers just say "that's normal" so they don't have to admit they didn't explain it upfront. You got hit with $700 on a $2,000 claim, which is basically a 35% pay cut, that's not fine print, that's a trap. The real problem is nobody reads that stuff until their stuff is ruined, and the insurance company knows it. I'd bet if you called around one more time and asked for a policy with a flat deductible instead of a percentage, you'd find a better deal.

christopherh791mo ago

That 5% deductible thing is brutal, but it's not just Alberta, that's pretty standard across Canada on water claims. Still sucks you had to learn it the hard way though lol.

smith.parker1mo ago

Three years ago I had a pipe burst in my basement in Calgary and hit the exact same wall. My adjuster told me the 5% was mandatory, but I pushed back and asked for the policy wording in writing, and suddenly they found a flat $2,500 deductible option that saved me about $800 on that claim. I called a couple independent brokers too, not just the big banks, and one of them got me a policy with a set dollar amount for water damage instead of a percentage. Took a few hours of phone tag but it was worth it. Point is, you can usually negotiate or shop around if you have the patience to say "show me the actual contract" and don't just accept the first answer.