When you retire and begin to live on a fixed income, you’ll have to figure out how to keep your monthly costs manageable. You may be able to save money on homeowners insurance after you retire, but you’ll have to get in touch with your insurer to get the savings you’re entitled to. It may also be a good idea to request quotes from other companies.
Your Premiums May Decrease Simply Because You’ll Be Home More
Insurance companies base their rates on a customer’s level of risk and the likelihood that the insurer will have to pay out to settle a claim. Since retirees tend to be home more than people who work, retirees can spot problems and take action sooner.
For instance, if you’re home and a fire breaks out or a pipe bursts, you will most likely notice it quickly and act to limit the damage. If you’re working somewhere else when a problem arises, on the other hand, it can go undetected until a neighbor smells smoke or you return home and discover flooding.
When you’re retired, the simple fact that you will be home more means an insurer can potentially save money. If you inform your homeowners insurance company that you have retired, you may be entitled to lower premiums.
You May Be Eligible for Other Discounts
You may qualify for additional discounts that can save you even more money on your homeowners insurance costs. You may be able to reduce the total amount you pay by bundling your homeowners and auto insurance policies. Installing a home security system can reduce your risk and save you money on premiums. If you have stayed with the same company for several years, you may be eligible for a loyalty discount. You may also be entitled to lower rates if you have gone several years without filing a claim. Contact your insurance company to ask about any and all discounts that can save you money.
You May Want to Modify Your Coverage
If you took out a mortgage to buy your house, your lender required you to carry homeowners insurance. If you have paid off the loan, you aren’t required to keep homeowners insurance, but getting rid of it altogether could be a mistake.
A storm or a fire can cause severe damage and leave you with large bills. You may be forced to drain your savings and may be left struggling to make ends meet. Keep your policy and look for other ways to save money, such as raising your deductible or adjusting your coverage limits.
You May Get Better Rates From a Different Carrier
Regardless of your age, it’s a good idea to periodically compare insurance rates from several companies. Insurers calculate their premiums in different ways and some offer discounts that others don’t. If you switch companies, you may be able to keep the same types and amounts of homeowners coverage that you currently have but pay less each month.
