Owning a home is arguably one of the biggest investments that people make in their lifetime. It takes a lot of time and effort to make your house feel like home, not to mention all of the functional improvements you have to make to keep up with your home.
Another expense that keeps homeowners up at night is the cost of homeowners insurance. Homeowners coverage can get a little expensive, especially if you are recently retired and have been investing into your home for many years, now. Older Americans may even need to add accessibility features to their homes as well, possibly affecting their homeowners policy. As a recent retiree, you are probably looking to cut down on some expenses as well.
The good news is that there is room for potential savings on your homeowners insurance by examining a few different factors that play into your policy.
Experts recommend not cutting out property and liability, as the losses could be major. But, there are a few other steps that will allow you to narrow down the amount of coverage that you actually need.
Review Your Policy
Experts recommend reviewing your policy every year and assessing if anything has changed and make sure everything is up to date. If you have retired or work from home it may save you a little money on your homeowners premium since you will be able to interfere with mishaps before they become disasters such as a fire or leak. Also, if you have renovated your home, added an additional structure or safety feature that could change things within your policy as well. Another big source of change is if you add or remove certain pricey belongings from your home. So, it is recommend that you take inventory and list out things that need the coverage that are a part of your home each year.
A lot of policy holders set small deductibles that they would never file a claim for something so small. Besides, if you do file a claim for something that small, your agency may drop you. Additionally, if you have a comfortable emergency savings fund, you should definitely increase your deductible because it will lower your premium.
Get quotes from a few different agencies to find the best price. Another place may offer the same coverage at a lower cost.
Make sure to adjust your liability appropriately, since you can protect your retirement funds that have probably gained value as you have aged.
Odds and Ends
There are a few things that people forget to consider when looking at their homeowners policy. For example, identity theft coverage is extremely important as scammer are beginning to target older individuals more and more. It also helps to consider adding riders to your coverage to make sure all of your valuable are covered. Lastly, consider working toward a higher credit score, it can lower your premium at a lot of agencies.
Aging causes many lifestyle changes which is why you must adjust many of its components and that includes insurance.