Society of Certified Senior Advisors: What Can You Do About Home Insurance Premiums?

Certain home improvements may lower your insurance costs and make your home safer for aging in place.

As of September, U.S. homeowners pay an average of $2,728/year, or $227/month, on home insurance–that’s an 11.5% increase since 2022, and the numbers are expected to rise.

Some factors affect your insurance premium that you have no control over; the location, age, and size of your home, for example. But other variables, you can tweak. Combine several of them, and you could end up saving hundreds or even thousands of dollars each year.

People who want to age in place often invest in some significant home improvements, and they may wonder if a more accessible, safer home will be cheaper to insure. The answer is, it depends. Often, adding an addition to a home or remodeling a bathroom will raise premiums because the improvements raise the replacement cost value of the home. In general, smaller-scale improvements like adding grab bars and non-slip flooring won’t raise your premium, but they won’t qualify you for a discount, either; although it never hurts to ask. And if those safety features prevent a guest from falling in your home, they may have saved you from filing an insurance claim.

Home Insurance Discounts for Seniors

Combine smaller discounts to get the best rate and the lowest premium. Here are some discounts that may apply for seniors, in particular.

AARP members may be able to take advantage of discounts on home insurance.
Ask your insurer if they provide discounts to clients over a certain age, usually 55 or 65. Some companies factor in that retirees are home more often than people who work full time jobs. Homes that are more often occupied are less prone to crime and major damage from accidents like burst pipes or fire.
A no-mortgage discount may be available to homeowners who have paid off their mortgage.
If you’ve been with the same insurer for many years, make sure they’re giving you a loyalty discount.

Arguably, all home improvements that make a home safer are age-in-place improvements. After all, in order to continue living at home until late life, you need it to be safe and secure. To that end, here are a few ways homeowners can protect their homes from calamity and damage, while paying insurers less money. All of the following steps are likely to bring down your annual home insurance costs. Let’s break it down by natural hazard.

Wind

The most impactful step homeowners can take to drive down their insurance premium is to install a new roof. On average, a home with a 10-year-old roof costs $363 more to insure each year than a home with a new roof.

In some states, especially where wind damage from hurricanes and other strong storms is driving up insurance costs, a wind mitigation inspection following a roof replacement can save you money on insurance. Some insurance companies, especially in Florida, require these inspections in order to estimate how well your home would stand up to extreme wind events. Factors that earn you “wind mitigation credits,” which translate to insurance discounts, include the age of the roof, longer nails placed close together, and newer/higher-rated shutters, windows, and doors.

Wind mitigation inspections are good for about 5 years, unless you have work done to your roof or if the roof is damaged, in which case the insurer will want a new inspection performed. Expect to pay in the range of $175.

Water

Flood insurance is not included in basic homeowners insurance. Depending on your location, you might decide to take steps to protect your home against flooding, but doing so won’t end up lowering your home insurance costs. However, other kinds of water damage are covered under most home policies, so there are water-related home improvements that could garner you a discount on insurance. These include installing a sump pump and installing auto water shut-off valves. If your plumbing system involves lead or polybutylene, updating it could save you money in the long run.

Fire

Homeowners in California and Oregon can work towards a Wildfire Prepared Home certificate to garner insurance discounts and protect their home’s physical safety. Getting certified involves several steps including the creation of a 5-foot “noncombustible zone” around the home free of vegetation, parked items, and other structures.

If you live in an older house, determine if the wiring is up to the latest safety standards. If not, consider rewiring your home for fire safety and a lower insurance rate. Installing a sprinkler system can also help lower your costs.

Like putting on a new roof, updating a home’s electrical and plumbing systems is not cheap. Weigh the costs of the renovations with other factors like your long-term comfort, safety, home value, and, of course, insurance bill. CSAs can be an invaluable resource for clients looking to finance home repairs. There are many options to navigate including reverse mortgages, state and local assistance programs, and home equity loans.

This article is not intended to be a substitute for professional financial advice from a qualified financial advisor.