Your home insurance protects one of your most important investments, your home, which is why you want to ensure you have the coverage you need at a price you can afford during your retirement years.
1. Keep Your Insurance
Some retirees living on a fixed income opt to cancel their homeowner's insurance once their mortgage is paid off. This is not a smart move. Homeowner's insurance provides you with the means to fix or replace your home and belongings should they be damaged and protects you from liability claims as well. However, getting rid of your homeowner's insurance puts all the equity and worth you have built up at risk, so be sure to maintain your homeowner's insurance policy.
2. Review Your Coverage
If you have carried homeowner's insurance for years, you will want to sit down and review your policy. If you have not updated your policy in some time, there is a good chance that your policy is out-of-date and not providing you with adequate coverage for your needs right now.
You will want to ensure you are not over or undervaluing your home, property, and belongings. In addition, you want to make sure you have extended replacement cost coverage on your home and belongings, so if something happens, your insurance and not your retirement account will provide you with the means to replace your belongings and rebuild your home.
3. Add Identity Theft Coverage
You may think you are keeping your personal information safe, but the truth is, hackers are finding more sophisticated ways of getting access to your personal information. Luckily, you can add identity theft coverage to your homeowner's insurance policy, providing you with personal protection so if your identity is stolen, you have the means to fight back.
4. Consider Your Deductible
Fourth, you are going to want to consider what your deductible is for your policy. You should have some savings built up as a retiree. As such, it may be worth it to raise your deductible up to the higher limit so that you can enjoy a reduced premium and reduced reoccurring expenses.
Even if your mortgage is paid off as a retiree, you should keep your homeowner's insurance policy in place to protect yourself. Review your coverage each year, and ensure it is adequate. Add identity theft coverage to protect yourself, and consider raising your deductible to lower your monthly expenses.