EINSURANCE14 Practical Strategies for Seniors to Save Money on Homeowners Insurance
Key Takeaways:
- With cost of living increases and a fixed or partially-fixed income, affordable homeowners insurance for senior citizens is extremely important. Even where you live can impact your home insurance costs.
- We offer 14 practical strategies and discounts ideas that will keep insurance costs under control in this volatile marketplace.
- Annual insurance reviews can be an important way to monitor your insurance policies for outdated coverage or over-insurance and reduce costs. Today’s insurance pricing technology makes getting quotes
As a senior, what’s typically your most valuable asset? Your home! Unfortunately, it is becoming more expensive to insure your investment and give you and your family peace of mind.
Between the increases in the cost of living and the rising expenses of homeownership, affordable home insurance for senior citizens can feel out of reach, especially for those living on a fixed income. This can be compounded by where you choose to live. We continue to see skyrocketing premiums in locations with increasing natural weather disasters, like wildfires in California and hurricanes across Florida and the south.
Completely foregoing insurance is not a viable option either. Without adequate insurance coverage, you risk significant financial hardship in the event of an accident that causes serious damage or destroys your home. With no way to rebuild, you run the risk of becoming a burden to family or worse.
In this article, we take a look at some practical strategies to save money on your homeowners insurance, as well as some homeowners insurance discounts for seniors. We also look at how to evaluate your current policy and where to turn for expert advice.
A brief word on condominium insurance (or renter’s insurance) versus homeowners insurance for seniors:
- Homeowners insurance is for people who own a single family home and not a dwelling that’s covered by a homeowners’ association. This type of insurance covers the structure of the home and all of its contents.
- Condominium insurance (or renter’s insurance) only covers the contents of the home with the homeowners’ association holding a separate policy to cover all of the structures within a condominium or townhouse community.
With many seniors opting to move to retirement communities, we felt it was important to outline practical strategies that apply to homeowners insurance, but some may also apply to a condominium insurance policy. Your insurance agent is the best source of information regarding the different policies.
8 Practical Ways to Save Money on Homeowners Insurance
- Raise Your Deductible – Your deductible is the amount you owe before your insurance starts to pay for losses. The lower your deductible, the higher your premium since you have less obligation or participation in paying claim costs. Many people choose $0 or $500 deductibles when they buy a homeowner insurance policy. However, raising the deductible to $1,000 or more can save you money.
- Upgrade Your Home – Insurance companies appreciate upgrades that create a safer home. These can be installing a home security system or smoke detectors or adding storm-resistant or fire-resistant features. Many insurance carriers will consider ‘Home Hardening’ with fire and storm mitigation strategies like clearing brush or installing metal roofs and fences when determining policy costs.
- Bundle Your Policies – Be sure to bundle all of your insurance policies with one company or carrier, e.g., homeowners, auto, and life. Insurance companies reward loyalty, and this could save you a ‘bundle’ in premium costs.
- Pay Annually – An often overlooked senior homeowners insurance savings tip is simply to pay your premiums all at once on the annual renewal date. Many people pay monthly because it is more convenient to budget for and avoids a one-time big outlay of money. But it is actually less expensive to pay the entire amount and reduce your costs.
- Shop Around – One of the best home insurance options for retirees is do an annual quote comparison to ensure you are getting the best price on insurance. With today’s technology, obtaining quotes is as simple as visiting a website, like einsurance.com, and requesting quotes that match your particular circumstances.
- Maintain a Good Credit Rating – Your credit score and history plays an important role in getting the best price on homeowners insurance. The better your score, the better price you get for all your insurance needs.
- Insure Correctly – You want to insure your house and be able to rebuild if something happens, but you don’t need to insure the land. Land can’t be stolen or swept away during a storm, so its value doesn’t need to be included in your homeowners insurance.
- Avoid Claims for Small Losses – For claims under $1,000, it is probably better to pay out of pocket rather than file a claim on your homeowners insurance. Each claim filed can raise your premiums and there is no reason to absorb the extra insurance costs if you can pay directly.
6 Additional Homeowners Insurance Discounts Available to Seniors and Retirees
- Maturity Discounts – Many insurance companies offer senior-specific or age-related discounts that will reduce your insurance premiums. Don’t be afraid to ask for your senior discount when discussing your insurance policy.
- Retirement Community or Gated Community Discounts – Living in a secure location can help mitigate an insurance company’s loss. Be sure to ask about this type of insurance discount which can be up to 5% or more.
- Professional Organization Memberships – There are often discounts that can be leveraged when you are a member of some organizations, e.g., AARP, professional groups for various career-related fields, like teachers, attorneys, accountants, etc.
- Military Service Discounts – Many seniors are veterans and can receive a significant homeowners insurance discount for their service in any branch of the military.
- Claims-Free Discounts – Most insurance providers reward homeowners and seniors who don’t have a history of claims. Be sure to get credit for your claims-free record.
- Non-Smoker Discounts – If you have kicked the habit, or never smoked at all, sign up for a non-smoker discount. Insurance companies reward seniors for being smoke-free. Smoking has drastically declined in the U.S. and people forget to ask about this discount that most insurance companies still offer.
Review Your Policy to Ensure the Most Affordable Home Insurance for Senior Citizens
Circumstances change and we continually stress the importance of regularly reviewing your homeowners insurance policy to ensure the best price for comprehensive home coverage for elderly homeowners. It’s good to get into the habit of doing it annually—like after the new year or when you do your taxes.
When you do a thorough review, ensure that your policy is reflective of your current situation which helps you avoid any unnecessary coverage. You may be eligible for new discounts or want to adjust deductibles.
Here is a comprehensive step-by-step guide that will walk you through the process. You will want to review your findings with a licensed insurance agent that specializes in homeowners insurance for seniors and retirees.
| Homeowners Insurance Review Guide | Check |
| Step 1 – Gather All Policy Documents · Locate current homeowners insurance policy · Include any supplemental endorsements/riders · Include your property valuation if available | |
| Step 2 – Review and Update Coverage · Coverage for Dwelling – Be sure it reflects current cost to rebuild your home (consider inflation, materials costs, labor costs, etc.) · Personal Property Coverage – Check to ensure your coverage would adequately replace your personal property, e.g., furniture, appliances, electronics, antiques, art, clothing, kitchenware, tools, jewelry, sporting equipment, etc. · Liability Coverage – Review all liability limits for adequate coverage · Additional Living Expenses – Coverage for temporary housing for you any family members | |
| Step 3 – Review Any Exclusions and Limitations · Review any exclusions: o Natural Disasters – floods, wildfires, earthquakes o Water Damage/Mold o Termites, Insects o Vacant Homes (especially important if you spend time in different locations, like Florida in the winter, and leave your home empty for 60 days or more) · Review limitations which are conditions covered by usually at a lower level · Be prepared to acquire additional coverage to fill coverage gaps if, for example, you live in a flood zone or have ultra-expense artwork | |
| Step 4 – Evaluate All Current Discounts · Talk with your insurance agent about all possible discounts, e.g., senior, bundling, safety systems, etc. | |
| Step 5 – Assess Your Deductibles · Consider whether your deductible is reasonable. Can you provide the amount in cash to satisfy initial insurance claims? | |
| Step 6 – Update Your Personal Property Inventory · Review and update your home inventory: new acquisitions, sales, depreciated items · Consider Age-Related Needs, e.g., ramps, grab bars, stairlifts · Take photographs of any valuables, e.g., jewelry, electronics · Plan to increase/decrease personal property coverage to meet new circumstances | |
| Step 7 – Review Credit Score to Ensure Best Pricing | |
| Step 8 – Shop for Quotes | |
| Step 9 – Meet with Your Licensed Insurance Agent |
5 FAQs About Saving Money on Homeowners Insurance as a Senior
1. What age qualifies as a senior homeowner for related discounts?
Most insurance companies begin offering senior-related discounts at age 55, although some wait until 60 or 62 years of age. It’s dependent on the insurance company and what they offer. Check with your insurance agent to ensure you can take advantage of age-related cost savings with your insurance plan.
2. Are there specific insurance companies that specialize in affordable home insurance for senior citizens?
Yes, AARP has an insurance program specifically designed for seniors that is through The Hartford insurance company. Like joining the AARP, their coverage starts at 50 years old. There are also many reputable national insurance companies that offer senior discounts and loyalty pricing, e.g., State Farm, Amica, Farmers Insurance, and Liberty Mutual.
In addition, there are some regional and state-run programs that offer assistance which may be coupled to property tax relief initiatives.
3. What’s the best way to compare homeowners insurance policies?
Today, there is technology available to help you gather quotes on affordable home insurance for senior citizens. Using a home insurance quote engine, like the one found here, you can gather information and find a knowledgeable and licensed insurance agent in your area.
4. How does downsizing affect premiums for homeowners insurance?
Well, that depends. If you are moving to a smaller home, that can reduce your premiums significantly. However, if you are moving to a new upscale area or community where the home prices are higher for less square footage, you will pay elevated premium costs accordingly.
5. I live half the year in another state. If I rent my home as a short-term rental, does it impact my insurance rates?
Yes, you will need to talk to your insurance agent about the consequences. Most insurance companies do not cover damage or liability for short-term rental properties with a standard homeowners insurance policy. You may be able to secure specialized coverage such as a Landlord Insurance policy, Vacant Home Insurance, or Short-Term Rental Insurance like ‘Allstate HostAdvantage.’ Just be sure to know your situation before you leave town.
A Final Word
As a senior homeowner, its important to ask the right questions and to find a trustworthy agent who can guide you in selecting an appropriate insurance policy that’s also a good value. From bundling policies to exploring multiple discounts to shopping around for quotes, we have given you some ideas for ways to be proactive when selecting the right homeowners insurance for seniors and retirees.
It’s essential to stay informed and seek professional insurance guidance/help, when needed, for your financial-related decisions. Visit einsurance.com to find an insurance pro in your area and to learn more about the ins and outs of homeowners insurance.
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