The cost of the average annual combined home insurance policy comes in at £150, but those over the age of seventy are often able to save on the cost of their policy as a result of the statistical analyses used by insurance companies.
Cheaper cover for over 70s
Research conducted by insurance providers has shown that claims made by older people tend to be for smaller amounts and are made less frequently than their younger counterparts. The statistics also showed a stronger trend toward honesty regarding the value of lost or damaged possessions in those over seventy.
As a result, consumers in this demographic often find they have greater choice when shopping for home insurance and they can take advantage of discounts and incentives offered by companies such as Saga and Age UK, who specialise in providing insurance to those over seventy.
Types of insurance
As with homeowners under 70, anyone who has a mortgage must also have buildings insurance that at least covers the cost of your home being rebuilt. This is a requirement of mortgage providers to ensure that their loan is safeguarded.
People over the age of seventy are often offered higher levels of contents cover
Many homeowners over the age of 70 will own their home outright, but it is still advisable to have buildings insurance in place to cover the cost of any damage to the structure or fixtures of the property, such as a tree falling on to your house.
It's also sensible to have a comprehensive contents insurance policy which will cover the cost of damaged or stolen goods such as electronics, clothes, furniture and jewellery. It's not compulsory to have contents insurance, but a quick look around your home will highlight just how costly it could be to replace its contents.
Additionally, having both contents and buildings insurance will ensure that a claim for damage that contains an element of both building work and contents replacement will be able to progress quickly and smoothly without any hold-ups while you try to arrange for the completion of work that your policy does not cover.
Having both types of home insurance doesn't necessarily mean paying double for your policy as many insurers offer large discounts to those who buy combined polices.
What's different for over 70s?
In addition to being offered discounts on their policy due to being a low-risk group, people over the age of seventy are often offered higher levels of contents cover and can access greater buildings cover too.
This is due to insurers acknowledging that people in this age group are likely to live in larger homes as a result of raising a family or buying in a more competitive market. They may also own more valuables.
Additionally, those over 70 can often take advantage of policies that offer new-for-old terms of replacement, which means they don't have to worry about finding extra money to replace a TV that was bought 10 years ago.
Discounts on home-security systems are also available which may reduce the overall cost of the policy and offer peace of mind to those who enjoy travelling in their retirement.
Get the right amount of cover
Many people underestimate the cost of their belongings and even how much it would cost to rebuild their home in today's market. The Association of British Insurers can offer advice on calculating the cost of a rebuild, but for contents insurance it's best to spend some time writing down the contents of each room and estimating the cost of replacing items such as clothes, curtains, carpets and electrical goods.
When you have a figure for your contents insurance use the MoneySuperMarket house insurance comparison tool to get quotes and compare policies. Err on the side of caution and add a little on to your contents figure as it's better to be a little over-insured than under-insured.
Check all of your insurance documents to ensure you are not paying twice for cover that is included in another policy you already hold. Before purchasing cover, ensure you read the terms and conditions in order to fully understand any exclusions.