If you are 60 years old or older home insurance doesn't have to be a big drain on your finances. In fact, for many people in this age category home insurance can actually be cheaper than the average UK policy.
Insurance providers favour the over 60s above others because statistics show that they are less likely to make a claim and when they do it is usually for a smaller amount than younger claimants. This puts you in a very good position to be offered home insurance at a reasonable cost.
In addition to this, you can also take out policies with SAGA, Age UK and Rias, who all offer home insurance to the over 60s which may include a discount as a welcome to new customers.
What kind of home insurance do you need?
There are two types of home insurance: buildings and contents insurance. Usually if you purchase both together you can get a significant discount from your provider.
Make sure that you calculate the value of your contents as accurately as possible
Buildings insurance protects the structure of your house: the walls, roof and built-in items such as your fitted kitchen or bathroom suite. It is only compulsory to buy buildings insurance if you have a mortgage as your provider will insist on it as security for their investment.
People over 60 are often the owners of large family homes and for this reason the maximum buildings cover offered is generally higher than that for younger people.
Your home is one of your most valuable assets and if something did happen to it you might find yourself having to pay very significant sums for repairs, so this type of insurance is a very sensible investment even if you own your home outright.
Also, if you travel frequently or for long periods, as many over 60s do, you may find that your unoccupied house is protected for a longer time under your new buildings insurance policy.
Contents insurance covers all your personal possessions. It has been found that the over 60s are quite likely to have accumulated a large amount of valuable items in their homes and for this reason insurers often offer them a higher level of contents cover.
Most contents insurance policies for the over 60s will offer new-for-old as standard. So if you were insured and your three-year-old television was stolen or damaged you would be paid enough to buy a new one.
Make sure that you calculate the value of your contents as accurately as possible so that you receive the full cost of replacement in the event of a claim. And if you have high-value items such as jewellery, art or furniture you will need to make your insurer aware of these specifically. They may be above your single-item limit and will not be covered in full if they aren't declared.
There are many benefits to over-60s home insurance. Read your provider's terms and conditions before committing and make sure that your policy will cover your assets as comprehensively as possible.