Many types of insurance, including auto, life, health, and disability coverage, use your age to help determine your rates. With some types of coverage, like auto insurance, senior citizens pay lower rates. Other types of coverage, like life insurance, charge higher rates for seniors. But what about homeowners insurance?
Homeowners insurance doesn’t use your age to help set your rates, so senior homeowners won’t pay any more (or any less) for their coverage because of their age. But there are still ways for seniors to save money on their home insurance, including comparing quotes on multiple policies and taking advantage of available discounts.
Cheapest homeowners insurance for seniors
According to our research, Erie and Auto-Owners are the cheapest home insurance companies in the country for most people, including seniors. The national average cost of an Erie home insurance policy is $1,284 per year, while Auto-Owners’ average policy is $1,406 per year. This means they’re about 31% and 26% cheaper than the national average, respectively.
Also, seniors who have an AARP membership may be eligible for a discount on their homeowners insurance through The Hartford. According to the AARP website, some people save as much as 20% when they bundle their home and auto insurance with The Hartford.
But the best way to find affordable homeowners insurance for seniors is to compare quotes from multiple companies. Homeowners of any age may find that rates vary significantly from one company to the next, which means comparing home insurance quotes could save you hundreds of dollars (or more) each year.
Home insurance discounts for seniors
Many home insurance companies offer a retiree discount. Because retirees likely spend more time at home, they are less subject to break-ins and sustained damage to their home, which can earn you a discount.
Seniors can also take advantage of several other discounts they may be eligible for in order to keep their insurance costs low. These include:
Retirement community: If you live in a retirement community
No-mortgage: If you no longer have a mortgage on your home
Loyalty: If you’ve been with the insurance company for a certain number of consecutive years
HOA: If you live in a community with a homeowners association
Claims-free: If you’ve gone so many years without filing a claim — typically 3 to 5
Bundling: If you bundle your home insurance with another policy from the same insurer
7 home insurance companies that offer retiree discounts for seniors
Here are some of the home insurance companies that offer discounts exclusively for retirees:
Is homeowners insurance more expensive for seniors?
No, seniors are not charged more for their home insurance due to their age. But the fact that they aren’t charged more doesn’t make it cheap, so some seniors may feel like they are paying too much for home insurance. But there are many ways to save money on your insurance, including taking advantage of discounts and comparing quotes from multiple companies.
What types of homeowners coverage do senior citizens need?
Seniors need the same basic types of homeowners insurance coverage as everyone else, including:
Dwelling: Pays for damage to the physical structure of your home.
Other structures: Pays for damage to other structures on your property, like fences and detached garages.
Personal property: Pays to repair or replace your personal property, like furniture, clothes, and electronics, if they are damaged by a covered peril.
Additional living expenses: Pays for the cost of hotel stays and other living expenses if your home has been so badly damaged you need to live elsewhere while it is being repaired.
Personal liability: Pays for medical and legal bills if a guest is injured or their property is damaged while on your property and you’re found legally responsible.
Medical payments: Pays for a small-dollar medical expenses if a guest is injured on your property, no matter who is at fault.
But seniors may need additional types of coverage to make sure they are financially protected.
Extra home insurance coverage for seniors
Senior citizens often have different, more expensive types of property to insure, which requires increased personal property coverage. Some of the items you might need extra coverage for include:
Medical devices: Wheelchairs and other mobility aids are not cheap and need to be included in your insurance policy. Reach out to your insurance agent to make sure your medical devices are properly covered.
Home modifications: You’ll need to let your insurance company know if you’ve added ramps, chair lifts, or other modifications to your home. If they aren’t included on your policy, they may not be covered if they’re damaged or destroyed, so make sure your insurance policy includes any home modifications you’ve made.
Heirlooms: If you have collected valuable items over time or you have irreplaceable items left to you by your parents or grandparents, it is important to make sure you have additional coverage to protect those items financially.
The best way to make sure your property is properly insured is to sit down with an insurance expert to find out exactly what coverage you need — and purchase additional scheduled personal property coverage if necessary.
Condo insurance for seniors
Seniors who own a condo will need condo insurance to protect their individual unit and their personal property. Because someone who owns a condo only owns the interior structures of their unit, the homeowners association (HOA) for their building is required to have a separate master policy that pays for damage to the exterior structure of the building, as well as damage to common areas like pools, elevators, and fitness centers.
Condo insurance is typically cheaper than homeowners insurance, but condo residents will end up paying a portion of the cost of their building’s master policy in their HOA fees.
Renters insurance for seniors
Seniors who sold their house or otherwise don’t own their own property need to have renters insurance. Renters insurance covers the cost of replacing your personal belongings, like your furniture, clothes, and television, if it gets destroyed, damaged, lost, or stolen by a covered peril.
Renters insurance only covers your belongings, it doesn’t pay for damage to the physical structure of your home (that’s what your landlord’s home insurance policy is for). This makes it cheaper than a traditional homeowners insurance policy.
Frequently asked questions
Is USAA the cheapest homeowners insurance for seniors?
USAA offers excellent rates for homeowners insurance, but each company has their own unique formula for determining rates, so you could find lower rates with another insurance company. Also, USAA only offers coverage for military members and their families, which means not everyone qualifies for coverage through USAA.
Who has the best insurance for senior citizens?
When it comes to homeowners insurance, there are multiple companies that offer good coverage at reasonable rates. USAA offers low rates for both active and retired military members, The Hartford offers special rates for AARP members, and several other companies offer generally low rates, like Auto-Owners, Erie, and Openly.
Is insurance cheaper with AARP?
It might be, depending on your situation. AARP offers discounted insurance through The Hartford, but insurance rates are based on a number of factors, including your ZIP code, your credit rating, your claims history, and the value of your property.
