Understanding Home Insurance Needs for 55+ Homeowners

As a homeowner your home is one of your most valuable assets –  in addition to being a symbol of all the hard work you’ve put into it. When you’re nearing or entering retirement it’s a good idea to make sure all your assets are protected appropriately. Optimizing your home insurance for your current needs is an important step to take.

Reviewing Coverage and Understanding Your Policy

If you’ve had the same insurance policy on your home for years it’s time to do a comprehensive review to make sure it is meeting your needs today. Make sure all changes are reflected in the policy. This includes any renovations, upgrades, and additions you’ve made. If you have high value items inside your home - art pieces, jewelry, and high-end appliances to name a few – those should be cataloged so their value can be covered.

Part of understanding your policy is knowing its limits both for the structure itself as well as coverage for personal property. You need to know if your current policy includes replacement cost coverage. This coverage may come with a higher premium, but it ensures that any losses can be either repaired or replaced at their current value – depreciation removed from the equation.

Speaking of replacement costs – one place you might be able to save money is on how much you’re insuring your home for. Many homeowners insure for the appraised value, not the replacement value – meaning they’re paying monthly premiums to insure the dirt and not only their home. Depending on your home’s location, the land might be worth significantly more than the structure.

Deductibles, Discounts, and Special Situations

Choosing a policy with a lower deductible may not be the best option anymore. If you have a healthy reserve fund covering a higher deductible for a major claim won’t be a hardship. In the trade-off you get a lower premium.

Did you know that being retired could get you a 10-25% discount on your homeowners’ policy? If your home is your permanent residence and at least one owner is at least 55 years old and retired, you should discuss a discount with your insurance broker. Other things that limit risk for your insurance company, such as having a home security system, can also qualify you for discounts.

In some cases, unique features and valuable items might need additional endorsements to be adequately covered. Make sure you discuss any custom-built structures, valuable artwork or technology with your provider.

Keeping up with regular maintenance and addressing small issues before they become big ones is the best way to avoid needing to file home insurance claims. Golden Home Management can help with that. For a flat monthly fee you get a full hour with a handyman in your home each month. They can make small repairs as well as give your home a once over to make sure everything is in good condition. You get to focus on your golf game and we’ll handle the details. Give us a call to get started today.