Does being retired affect home insurance?

If you’re heading towards retirement, you may want to know how your new lifestyle could impact other important areas of your life. For instance, does being retired affect home insurance? Or could you benefit from home insurance for over 60s? In this article, we’ll aim to find out.

What is the average retirement age in the UK?

According to the Office of National Statistics 2021 census [1], the average age for retirement in the UK is 66 years old. This has increased from 64 years old in 2011.

Which life changes could mean insurance changes?

Retiring often goes hand in hand with shifts in your lifestyle that can increase or reduce the risk levels associated with your insurance. Below we explore some examples of these potential changes and consider how they may impact your insurance, given the factors that are used to calculate insurance costs.

Downsizing

If you choose to downsize to a smaller property, or perhaps annexe, this may reduce your insurance costs. Smaller homes typically cost less to insure as there’s less square footage to repair or replace should your home be damaged. It’s also possible to reduce your insurance costs further if your relocation involves moving to an area with lower crime (such as a gated community) or flood rates.

Freehold to leasehold

If you move house, one change that could occur is going from being a freeholder to a leaseholder. Many detached and semi-detached homes are freehold, while flats tend to be leasehold. Those downsizing, may find moving into a flat an attractive option, especially if the flat is part of a retirement community.

If you’re a leaseholder, you’ll likely share the cost of buildings insurance with other leaseholders. This can mean cost reductions, but not always. You may find you’re unable to control who provides the block’s building insurance, so could find yourself stuck with a deal you’re not happy with. This is why, when moving to a leasehold, it’s important to carefully consider the leasehold agreement, which will detail the insurance arrangements.

Modernising your home

If you plan on adapting your home, either through an extension or renovation, this can add to the value of your property.  While this can be a positive it will also increase the amount of insurance cover you need, as the cost of rebuilding your home would also be higher.

Before making any changes to your home, you should inform your home insurance provider. They will need to know exactly what is being done so that they can make any necessary changes to your policy (if required). You may also need extra protection, to help cover your home against damage caused during the construction process.

Progressing hobbies

Certain hobbies and pastimes come with expensive equipment or involve curating valuable collections. Should you want protection for these items, you may need to increase the value of your contents insurance.

For example, if you’re an avid cyclist, it may be worth investing in bicycle cover as an optional extra. Or, if you’ve spent years seeking out valuable collectables, such as coins or ornaments, you may want to discuss the value of this collection with your insurer.

Travelling

If you’re planning on being away from your home for a prolonged time, such as going on a long holiday, it’s worth checking the details of your insurance documents. It can void your insurance if your home is left empty for an extended period of time.

This will vary between providers and typically ranges between 30-60 days.

Getting a pet

It’s worth noting that any damage caused to your home by pets  is typically not covered by standard home insurance. As such, you may need extended accidental damage cover.

Does being retired affect home insurance?

You may find that your insurance costs are lower after retirement.

Several factors can lead to the reduction in home and contents insurance for those over 60, including: 

Your age

As you get older, you become statistically less likely to make a claim.

Your experience

Many retirees have spent years learning how to maintain and protect their homes, whether that’s lagging pipes in the winter or keeping gutters blockage-free. Because of this, insurers can deem you a lower-risk homeowner and therefore reduce your insurance costs as a result.

Your lifestyle

Certain elements of retired life can reduce the risks associated with home ownership and therefore your insurance. This could be spending less time at work and more time at home, increasing the security of your property.

But these aren’t the only influences. In fact, many more factors are considered when calculating the cost of your home insurance. These range from the size, age and location of your property, to your claims history. 

Could I benefit from home insurance for over 60s?

At Age Co, we aim to help customers make the most of later life. We offer Home Insurance, provided by LV=.

By switching with us, you can access a range of features and benefits on offer:

• No fees to cancel or amend your cover
• 0% interest charged for paying monthly rather than annually
• £100 minimum excess available
• Gold Home Insurance includes cover such as Home Emergency and Accidental Damage as standard
• UK-based call centres and access to a 24-hour Domestic Emergency Helpline

Click here to get a Home Insurance quote with Age Co.

Summary

You may well see the price of your home insurance fall as you reach retirement. However, it’s not the retirement itself that will have the biggest impact on your home insurance, it’s the way you plan to spend it. 

If you’re looking to revise your home insurance in later life, it can be helpful to keep these key points in mind:

• Your age is one of many factors that affect your home insurance, with details such as your lifestyle and location also having an impact.
• Choosing a provider that offers products with you in mind can help you get more value from your home insurance.

To learn more about switching your home insurance with Age Co, click here.

[1] Office of National Statistics