The criteria that insurance companies consider is basically the same across the country — meaning, the guidelines for homeowners in Alberta are the same in any other province or territory. A number of factors are used to determine the cost of home insurance. The major thing that insurance adjusters look at is how much it would cost to replace your home, contents included. Insurers only cover the cost to replace the structure and contents of your home — your benefit is not based in any way on the current market value of your home. Where you live has a big impact on your premium. Insurance is pooled risk, so neighbourhood demographics, as well as its claim history, matter. However, your personal claims history carries more weight. The topography of your neighbourhood is another factor, too. If you live near a lake or river, your adjuster will definitely take that into account, since there's an increased risk of flooding. Living close to a fire hydrant, as most urban dwellers do, can have a positive impact on your premium. Of course, insurance companies calculate risk differently and that can result in different rates. That’s why it’s important to shop around.