What Happens to Home Insurance When You Retire?

As a retiree, it’s likely you’ve paid off your mortgage or are close to doing so, with around 74% of retirees owning their homes outright in 2022-23.

As we all know, a lot of mortgage lenders require homeowners to have sufficient home insurance policies in place to qualify for a mortgage deal. However, just because your mortgage is paid off, doesn’t mean you shouldn’t have your home insurance sorted.

There are several different reasons to invest in quality home insurance as a retiree, ensuring you’re protected, despite your mortgage being paid off.

Your Lifestyle May Change, and So Might Your Cover

Retirees typically spend more time at home, especially if they were working their typical nine-to-five in an office, or other long hours outside of the house before retirement.

This now means insurers are likely to see you as less of a risk, with a lower chance of burglaries and unnoticed damage in your home. This can open doors for you to access competitive premiums for quality home insurance products, keeping your property protected.

On the flip side, if you’re planning lengthy holidays to reward yourself for years of hard work, you’ll have to let your insurer know if you plan to be away from your home for more than 60 days.

Adjusting Your Policy to Your New Routine

Retirement can affect your home insurance in several ways:

Valuables

Often, people will celebrate their retirement with a gift. If you’re thinking of buying valuables such as jewellery, tech or hobby equipment, then they may need to be added to your policy.

Renovations

Many retirees use their free time to conduct DIY projects or invest their money into home improvements via a professional company. If this is the case, then you’ll need to declare the planned work to your insurer before it starts. This way, if something goes wrong during the construction, you avoid an unpleasant situation, covered by your insurer.

Accidental Damage add-on

Being home more often increases the risk of little mishaps taking place, like spilling paint, knocking over the TV and other risks that can prove costly. Adding accidental damage cover to your policy protects you against significant financial losses when accidents happen.

If you have grandchildren and have them visit frequently, then Accidental Damage Cover can be your best defence against expensive accidents.

Possible Savings

Many insurers will see retirees as ‘low risk’ due to the fact that homeowners are in the property a lot more than those working full time, as well as the years of experience in owning a property. Quick responses to risks like leaks and fires, as well as being home more often to lower the risk of theft, mean you can spot risks immediately and stop them from causing irreparable damage to your home.

Regular Policy Reviews Are Key

Renewal is the perfect time to contact your adviser or insurer to discuss the best option moving forward. Think if you need to add anything to your policy, or any amendments that need to be made. If you have a financial adviser, then they’ll be able to help you make the right decision. You’ll want to make sure you’re happy with your insurance before committing to another year.

If you’re a retiree and need some guidance on your policy renewal, give us a call on 02920 265 265.

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