Home Insurance Costs For Seniors
Seniors’ number one concern is housing. Protecting this asset requires insurance. The big question becomes, “How much should I pay for home insurance?” In other words, “What are insurance costs for seniors?”
Factors Influencing Home Insurance Costs
Below are the top variables that factor into home insurance costs for seniors.
Home Cost & Price To Rebuild
The price of your home and the cost to rebuild is one o the biggest factors in pricing home insurance. The higher the price and the higher the rebuild cost, the higher the premium.
Location Of Home
Where you live also has a major influence on your home insurance costs. Urban areas are more expensive than rural areas, and premium costs reflect this difference. In addition, some geographic areas are exposed to greater fire and flood risks.
A deductible is an amount the insured pays before the insurer starts paying. In other words, if your home sustains 50,000 in damages and your deductible is $5,000, you’ll have to pay $5,000 before the insurance company pays the rest, or $45,000.
The Age & Condition Of The Home
Older vintage homes cost more to rebuild or replace. They often have more ornate features built with more expensive materials. Therefore, home insurance premiums are higher.
The Amount Of Coverage
The amount of coverage you purchase also determines how much the insurance costs. Insureds can purchase policies that pay the full replacement value of their home or insure for a specific amount. An insurer can obtain coverage with high limits or low limits. The higher the coverage, the more the insurance costs.
Home Safety and Security Features
Many insurers reward homeowners with a discount if they install security or safety systems that reduce risks. For example, security systems, fire alarms, and strong deadbolt locks all minimize risks.
Purchasers Credit History
Some states allow insurers to assess an insured’s credit history. They can use this history to lower or increase insurance rates. Some insurers will use the “credit score” as part of an overall “insurance score.” Regardless, the better your credit score, the more likely you’ll pay a lower rate.
Types Of Coverage
There are different types of coverage. Types might include a policy for all perils, while another specifically names the perils. You can obtain a type of coverage for a single peril. Rates vary accordingly.
Bundling Other Insurance Policies With Same Insurer
One of the best ways to save on home insurance is to bundle other types of insurance with the same insurer. For example, if you home insurance with car insurance, the insurer is likely to give you a discount. Discounts for bundling are often as high as 20%.
Insurance companies offer the same insurance at different rates. Rates differ for many reasons. Some insurance companies operate mostly online. Others are branch-heavy. Regardless, shop around.
Potential Senior Discounts
Seniors can lower their cost of home insurance. Senior discounts on home insurance are common and readily available. They are available for new shoppers and renewing customers. Some of the more common discounts are listed below.
Cost For Senior Home Insurance
Costs vary for many reasons. The biggest reasons are:
A Simple Process To Follow To Get The Lowest Prices
One of the best ways to start your search for the best rates for the bet coverage is to do the following.
- Obtain and review your current policy
- Ask your neighbors what they’re paying. They are;t likely to know exactly what their policy covers, but they are likely to know what they’re paying.
- Determine what coverage you need.
- Shop around.
- Compare apples to apples (i.e., make sure the insurance company quotes the same coverage).
Other Resources On Home Insurance Costs
Great information on home insurance can be found here.
A price guide for seniors’ home insurance can be found here.