When you retire, you likely see your income restrict. When it does, you'll want to keep your budget in line. That will likely mean you have to review regular household costs. These might include things like your homeowners insurance rates. What can you do to keep your insurance costs in line, even as age or income make home upkeep a bit more challenging?
Regardless of income after retirement, consider a policy review crucial to your future. It can mean looking for ways to save while keeping your coverage limits appropriate to your home.
Step one: Pay off your home's mortgage
If you have a mortgage, the lender in the deal will likely require you to carry homeowners insurance. They'll often set a minimum limit on how much coverage you must carry. That's to protect their own investment in your home.
However, once you pay off the mortgage, you will likely see the rule to carry coverage go away. Thus, you'll no longer have to get coverage for simply what a bank requires. Instead, you can often review your coverage to determine the coverage that's right for you. Chances are, the bank's simple coverage might not be the best fit, after all.
Step two: Review your coverage
Over the years, the value of your home will change. Thus, the coverage you need at retirement might vary from the coverage you actually have. Talk to your insurance agent. They can help you look at your policy to determine where you need more, and where you might need less coverage.
Also consider adjusting your policy deductible at this time. If you increase your personal financial responsibility, you'll often lower the risk to the insurance company. Therefore, they might lower your rates.
Step three: Consider a security system
If you don't have a comprehensive alarm system in the home, installing one might prove to your benefit. Not only will it increase personal security, but it could also lead to policy discounts. Various systems might include burglar, medical emergency and smart-home alarms. The more layers of security you add, the better your chances of savings might become.
Step four: Ask about policy discounts
Don't forget to ask your agent about applying any and all discounts for which you may qualify to your policy. Some of these you might enjoy include:
Upon retirement, ask your agent to review your existing homeowners insurance goals. The more attention you pay to the finer details of your policy, the better your outcome might prove.
- Claims-free discounts on policies that have never had a claim.
- Discounts for those with stable credit.
- Credits for those who join homeowners associations.
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