Insurance is all about hedging risk. Catastrophic weather events are one risk that insurers watch out for — heavy rain especially. Medicine Hat is fortunate in that regard, since it’s one of the drier cities in Canada with average annual precipitation of around 13 inches, and that can help reduce premiums. Flood protection isn't included in base insurance policies, but you can add extra coverage to your policy for this risk in the form of an 'insurance rider.' Another climate risk comes from forest fires. Medicine Hat is known as the sunniest city in Canada, but fortunately, it doesn’t experience excessively hot weather, so the risk of fires is not especially great. That again is an advantage for homeowners when it comes to the cost of insurance. Most insurance policies include fire coverage (minus ones that are intentionally set). And finally, there’s also the risk of tornadoes, which can cause extensive damage to property. Medicine Hat lies in one of two large areas in Canada that are prone to severe tornadoes, which in turn will likely increase home insurance premiums in the area. Home insurance policies usually have wind coverage.