Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
How to Save Money on Home
When You Retire
We have some helpful tips if you're getting close to retirement
and you are looking to invest in some cheaper home insurance. We
offer you the dos and don'ts on shopping for home
insurance for pensioners.
Do Your Research
Itís important when purchasing any insurance that you take your time shopping
around and that you fully understand what kind you need and the different
options that are out there. For instance, most policies will not cover your home
if it has storm damage. Speaking to a
attorney first and sorting your finances and home will ensure it will be
viable for the best insurance coverage, which will help the policy cost less and
help you save more. Research and planning are crucial.
Whether youíre a first-time buyer making sure you buy a home the right way or
you are checking to see what other options are available, research is the first
step in the process to making sure you find worry
Contact Your Insurance Department
Start with contacting your insurance department. Every state has one, though the
services they offer vary from state to state. Their job is to regulate companies
to protect the consumer, so they are an invaluable resource when looking for
They offer help in understanding the best homeowners in your state. Often the
State Insurance Department provides buying guides on their websites as well.
They can give you advice on what sort of pitfalls to avoid when shopping for
insurance, and if you have specific companies in mind already, you can ask them
if they have any complaints filed under those companies as well as offer a rate
For rate comparisons, keep in mind that these are not the same as a quote. You
wonít know the exact price a company will offer you unless you receive a quote
from them since several factors determine insurance rates.
Get Quotes from Multiple Companies
Be sure to get more than just one or two quotes. We recommend looking into at
least three separate companies at a minimum. There are plenty of options out
there, and you want to get exactly what you need.
Compare ratings on the companies from third-party sites
When comparing insurance companies to one another be sure that you are using
user ratings from independent sites that are not affiliated with these
companies. You can also look at consumer magazines for ratings or ask a trusted
friend or colleague for their personal experiences.
Take Note of Their Customer Service
Not only is it important that your insurance company offers you affordable
rates, but it is equally important that you are provided with good customer
Undoubtedly, you will run into issues throughout the years, and having a company
that listens to you and is quick to respond to your needs ó especially when
dealing with homeowners insurance after your house is hit by a flood or fire.
Take note of how these companies treat you when shopping around.
What about homeowners insurance discounts?
Discounts are where you will save the most money. As a retiree, there are many
advantages that can come with owning a home and being insured. For starters,
itís a great way to optimize your money in retirement. So you will want to start
saving right away. You can start by looking into the best kind of discounts out
If your home is your permanent residence and your partner is over the age of 65,
you may qualify for credit on your insurance. This is usually because most
retirees spend more time at home and as such can catch small fires or gas leaks
faster, thus preventing damage.
Often insurance companies will reward you if you have owned a home for over 10
years without incident. They may also reward you for being a long-term member of
Theoretically, gated communities have added security, which makes their
locations more secure. Some insurance will give you discounts for owning a home
in secured locations.
Homeowners Association Credit
Similar to the Gated-Community Credit, being in a homeowners association adds
extra security as well as extra maintenance to a home. Both of these factors
contribute to a safer home, so some companies may offer a discount.
Be sure to check for obscure discounts as well. There are discounts for recent
homebuyers, for nonsmokers, and for using automatic payments. Always check so
you are sure you are getting the lowest cost possible.
Is homeowners insurance cheaper without a mortgage?
No, however, most mortgages require you to have homeownerís insurance, and they
are also specific in what kind of insurance you need to have. Once you have paid
off your homeowners insurance, you have more leeway, so you can tailor your
insurance to better fit your needs.
Raise Your Deductible
How do you lower homeowners insurance premiums? Well, the easiest way would be
to increase your deductible. A deductible is the amount of money you are
responsible for when filing a damage claim with your insurance.
Should a disaster occur, this may cost you more, but if you have finished paying
off your mortgage, that plus paying less on the insurance monthly fee could make
such a risk worth it.
Bundle Your Policies
Most companies offer you discounts if you bundle your home, auto, life, and
other insurance together. Consider your options for health
care insurance, too. In your research when looking for good homeowners
insurance, be sure to check out the other kinds of insurance they offer and
compare those as well.
Adding Features to Your House
Your premium is not based on how much your home is worth, but instead on
multiple factors like how much it would cost to repair and the likelihood of it
suffering damage. This is why you can often bring down your monthly fees by
adding features to your house that reduce the risk of damage or costs.
Features that could reduce your costs include things like modernizing your
heating system, installing storm shutters, adding extra security to your home,
or adding shatterproof glass to your home.
Donít Add the Value of Your Land to Your Insurance
In addition to modernizing your home, when looking for and understanding
homeowners insurance, be sure to only include the value of the home and
items in it, not the cost of the land it sits on.
Similar to the point above, a homeowners insurance policy bases your premium on
possible repair costs and risk, not on the overall value of your home. So it is
an additional cost you donít need to add to include the cost of the land your
home sits on.
Stay with the Same Insurer
Most insurance companies will lower your premium the longer you are a customer
with them. So unless you see better insurance, itís usually a good idea to stay
with the same insurance company long-term. This is also why itís equally
important you do your research and choose the right insurance from the
Be Sure to Reassess Each Year
As time goes on, you will likely make changes to your home, whether itís
installing new windows or buying expensive collectibles. Check that your
insurance covers these changes. This includes making sure you arenít paying too
much for an item that has depreciated in cost over time.
This is why you should reassess your insurance annually. Chances are, there are
some costs you can shave off your premium.
Revisit the tips in this article annually. Even if a discount canít be applied
right away, that doesnít mean this will still be the same a year from now.
Breanne Lingo is a home insurance specialist with the insurance comparison
About the Authors
Early Lifestyle appeals to a different
kind of person Ė the person who prizes their
independence, values their time, and who doesnít
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha