Whether you already own your own home or plan on relocating in retirement, there are several opportunities for you to save money on homeowners insurance, if you or your spouse is 55 years of age or older. An advisor can review your current policy to determine if you are paying more than necessary, and help you take advantage of some industry savings that may be available to you at this stage in life.
Mature Credit — Up to 25 Percent
You may qualify for a savings of 10 to 25 percent on your homeowners policy as long as your home is your permanent residence and you or your spouse is 55 years of age and retired. Home insurers provide discounts to retirees because they tend to spend more time at home where they might be able detect home hazards — a gas leak, a ruptured pipe or an electrical fire— before they become catastrophic. According to Sean Meehan, Second Vice President of Property Strategy and Design for Travelers Insurance of Hartford, Connecticut, retirees are home more and therefore able to identify a loss sooner to mitigate the damage.
Claims-Free Discount — Up to 20 Percent
Many insurance companies will reward homeowners who have a clean record. If you’ve had no homeowners claims for 10 years, you could receive up to a 20 percent discount. You may also qualify for a long-term customer discount upon renewal, if you’ve been insured for a certain number of years.
Gated-Community Credit — Up to 20 Percent
Many home insurers offer a credit of five to 20 percent for a secure location. If you live in a gated community according to Meehan, the added security will help mitigate loss by reducing the risk of vandalism and theft. Your location can also affect the rates you will pay. “If you live near your local fire department in a safe, quiet, easily accessible neighborhood, your homeowners rates might be lower than if your home is located off the beaten path,” says Meehan. “Your home may cost more to insure if you are many miles from the nearest fire department.”
Homeowners Association Credit — Up to 10 Percent
Some home insurance companies will give you a credit of five to 10 percent if you are part of a homeowners association or HOA. Due to the added security and maintenance requirements of these neighborhood associations, your home may be considered to be safer.
In addition to the discounts outlined, you could also save money if you are a non-smoker, have smoke detectors, a home security system or storm shutters (depending upon your location) installed in your home.
Review the Cost of Your Current Policy
If you have an older policy with a built-in escalating clause in terms of value, it may not take into account the fluctuation in home values. If your premiums keep going up you may eventually be paying for more than what you need. Purchasing a new policy may be the answer.
An advisor can help you find the right coverage, compare quotes, and alert you to any savings or discounts available to you. Another way you can save is by combining your auto and homeowners insurance for a discount of up to 20%. Talk to an advisor today or visit us online. We’re here to help you get the savings and service you deserve.
TMA Insurance Trust is a full-service insurance agency with over 60 years of experience helping Texas physicians protect their assets, family and practice. Advocating for members, TMA Insurance advisors offer unbiased information and strategies, along with exclusive group rates on a range of the highest-rated plans in the industry. And since advisors don’t work on commission, there is never any obligation or sales pressure.