Homeowners insurance for seniors: A comprehensive guide

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Homeowners insurance is an important expense that seniors should plan for, even after retiring. As long as you own a home, maintaining insurance coverage is essential to protect your investment.

For retirees who have paid off their mortgage, there’s no longer a lender requiring them to carry homeowners insurance. This can make it tempting to skip coverage to save money.

However, unless you have enough wealth to self-insure—meaning you can afford to pay out of pocket for major repairs or even to rebuild your home entirely—going without insurance is a significant risk. Without coverage, a disaster could leave you with substantial financial losses that might be difficult to recover from.

“In the absence of homeowners insurance, property owners risk a huge financial loss, as they will be solely responsible for all costs to make repairs or to rebuild,” says Erin Collins, senior vice president of state and policy affairs for the National Association of Mutual Insurance Companies.

Here’s what seniors should know when shopping for homeowners insurance.

Key Takeaways

Most seniors should carry robust homeowners insurance coverage, even if they own the home they live in free and clear of a mortgage.
The coverage seniors need can vary based on the type of property they own.
Qualifying for discounts — including those specifically available to seniors — can reduce the sting of rising homeowners insurance costs.

Key homeowners insurance considerations for seniors

Seniors should assess their coverage limits to ensure they align with the current value of their home and personal belongings, particularly if they’ve downsized or made significant upgrades.

Key areas to evaluate include:

Dwelling coverage covers the full cost to rebuild the home at current construction prices, accounting for inflation and rising material costs.
Personal property coverage covers the value of personal belongings, especially if downsizing or acquiring new valuables like electronics or jewelry.
Liability coverage protects against potential lawsuits if someone is injured on their property, particularly as assets grow with age.
Additional living expenses (ALE) covers temporary living costs in case the home becomes uninhabitable due to damage.

Affordability and deductibles are also important factors for seniors to consider. Choosing a higher deductible can lower monthly premiums but may create financial strain if a claim is needed. Additionally, seniors should explore discounts that insurers often offer for home security systems, bundling policies, or being claim-free. Understanding the risks specific to their region, such as flooding or earthquakes, and adding riders for uncovered perils can help ensure comprehensive protection. Tailoring a policy to match both financial and practical needs is key to long-term peace of mind.

Coverage options seniors should consider

Whether you own a home, condominium, or rent an apartment, having the right insurance coverage is essential to protect your property and belongings.

Here are the types of insurance seniors may need:

Homeowners insurance: This policy protects your home and property in case of damage or destruction. It also includes contents coverage for your belongings, such as furniture and personal items, and liability coverage to protect you if you’re responsible for injuries or property damage to others.
Condominium insurance: Similar to homeowners insurance, condo insurance provides liability coverage and protection for your belongings. Additionally, most condo owners are covered by their condo association’s master policy, which typically insures the building’s exterior and shared areas.
Renters insurance: If you rent, renters insurance offers liability and contents coverage to protect your belongings and cover damages you may cause to others. Unlike homeowners insurance, it doesn’t cover the structure itself, as that’s the landlord’s responsibility. Renters insurance is usually more affordable than homeowners insurance.

How much does homeowners insurance cost for seniors?

Home insurance rates are not determined by age. Instead, several factors influence how much you’ll pay, including:

The amount of coverage you purchase
The type and location of your property
Your claims history
The deductible you select
Whether you qualify for discounts

According to our survey, the average cost of homeowners insurance is $2,601 for $300,000 in dwelling and liability coverage with a $1,000 deductible.

For condo owners, the average insurance cost is $795 for $60,000 in personal property coverage and $300,000 in liability coverage, also with a $1,000 deductible. Condo insurance tends to be more affordable because the condo association’s master policy covers the building’s structure and shared areas, leaving you responsible only for the interior of your unit.

Best homeowners insurance providers for seniors

Your individual insurance needs and other factors — including the type of policy you want, the type of property you own, where you live and your insurance needs and claim history — will determine which insurance provider is best for you.

However, a handful of insurance companies have earned a strong reputation with senior homeowners. Some of the best include:

The Hartford. With its AARP partnership, The Hartford caters to senior homeowners specifically, providing discounted rates and other perks.
Allstate. Allstate is one of the few companies that offers a retiree discount on home insurance.
Erie Insurance. Repeatedly ranked among the best, Erie Insurance tops ratings lists including our list of the Best Home Insurance Companies for 2024 and J.D. Power’s rankings.

Special discounts on homeowners insurance for seniors

For the most part, senior homeowners are eligible for the same discounts that any other homeowner can enjoy. There are few discounts specifically available to senior homeowners.

Collins says that some seniors who live in a retirement community might be eligible for discounts available to everyone in that community.

“Some senior citizen organizations may also negotiate special benefits and discounts through affiliated insurers,” she says.

Otherwise, seniors should ask their insurer about available discounts.

Seniors can qualify for discounts by taking steps such as:

Upgrading their roof for better durability
Installing burglar and fire alarm systems
Adding smart home devices, like gas and water monitors or automatic shutoff systems

How to apply for retiree discounts for seniors

Insurer discounts offer a great way to trim your homeowners insurance costs. However, discounts won’t do you much good if you don’t take advantage of them.

The best way to apply for discounts is to look at what is available on the insurer’s website or ask your agent or a representative about discounts for which you might qualify, including retiree discounts such as that offered by Allstate.

For example, if you join AARP, you can take advantage of that organization’s partnership with The Hartford. Members can save up to 20% when they bundle their homeowners and auto insurance coverage.

If you qualify for any type of discount, your agent or a company representative should let you know what you need to do to get the price break added to your policy.

How to purchase homeowners insurance

When you’re ready to purchase homeowners insurance, follow these steps to find the right policy:

Decide what type of coverage is right for you. Whether it’s homeowners, condo, or renters insurance. Then, decide on the level of personal property coverage

Determine how much coverage you need.It’s essential to have enough coverage to rebuild your home if it’s destroyed and to replace your belongings. For homeowners insurance, make sure the dwelling coverage matches the replacement cost of your home.

Shop around. The best way to get a great deal on the right policy is to compare quotes from multiple providers. Many experts suggest that you get a minimum of three quotes.

Check out the companies that seem like good candidates. As you narrow down to one or two providers, read customer reviews, check the company’s financial status as rated by companies such as AM Best and check the insurer’s complaint score with the National Association of Insurance Commissioners (NAIC).

Choose a deductible amount and ask about discounts. Selecting a higher deductible will reduce your premiums. Just make sure you can afford the deductible if you file a claim. Also, ask about any available discounts.

Purchase any additional coverage you might need. Once you’ve secured a homeowners policy, look into other types of insurance you might need, such as flood insurance, earthquake insurance and umbrella liability coverage.

Expert advice: Optimal home insurance plans for seniors

For more tips on how seniors can get the best home insurance policy, we talked to Kenton Brine, president of the NW Insurance Council, a Seattle-based nonprofit that offers information about property and casualty insurance to consumers, communities, the media and elected officials.

Kenton BrinePresident of the NW Insurance Council.

Q: Some seniors have paid off their mortgage and might think they no longer need homeowners insurance since a lender no longer compels them to buy it. Why is this a mistake?
Let me answer this question with a question for any senior — retired or still working — who has paid off their mortgage: Can you afford to rebuild your home and replace your possessions if your home was a complete loss due to a fire? For most of us, the answer is a hard no. Add to that the cost of finding a place to live while your home is being rebuilt — costs typically covered under the additional living expenses benefits in a homeowners policy. Unless you are wealthy, have a family you can move in with for an extended time, or are prepared to simply walk away from your home, these costs will be prohibitive. Your possessions are covered wherever they are. If your home is burglarized and your possessions are stolen, homeowners policies help pay to recover what you’ve lost. But also, they apply to your possessions stolen from your car or from your luggage if you’re traveling. Liability protection is also provided — with limits you can increase — under your homeowners policy in case you are sued by someone who is injured on your property or due to your negligence. Without this coverage, a claim filed against you is your responsibility and can cost your savings, your retirement income, even your home.
Q: When it comes to homeowners insurance, is there anything the senior homeowners need to be aware of that applies to folks their age and in their stage of life?
A: As more Americans choose to age in place in their homes rather than move to senior living communities or facilities, it is important that they talk at least a couple of times each year with their insurance agent or company, to make sure their coverage meets their lifestyles, financial position and needs. First and foremost, keeping track of the ever-rising cost of home repair and rebuilding may not be top-of-mind for some seniors, so it can be easy to be left underinsured — a situation that arises when the homeowners policy doesn’t include replacement cost coverage and, following a total loss, the homeowner has insufficient policy limits to pay the full cost of rebuilding the home. And, of course, home maintenance is critical and can affect your insurance claim if your home suffers storm damage. So, seniors who have difficulty with home repairs and maintenance should consider seeking assistance or services to keep their homes well-maintained. But also, talking with your agent or company may reveal ways to save on the coverage you need, like raising deductibles — the “out-of-pocket” expenses paid by policyholders when they file a claim — adding security systems or bundling home, auto and other policies with the same company.
Q: What types of homeowners insurance discounts might be available to senior homeowners?
A: We’re not aware of any age-related discounts on homeowners insurance policies, but insurance companies do sometimes offer discounts for long-term customers, as well as for things like home security systems, installed fire extinguishers and smoke/heat detection systems. Also, as previously discussed, many insurers offer discounts to customers who bundle their home and auto policies with the same company.

Editor’s note: Answers have been edited for brevity.

Final thoughts and recommendations on homeowners insurance for seniors

Protecting your home as a senior is just as important as it was at any other age. Ensure you have enough coverage to replace your home and protect your finances if you’re sued by someone injured on your property.

The best way to get the policy you need — and at an affordable price — is to shop around and compare quotes from several providers before choosing the insurance company that is right for you.

Chris Kissell

Contributing Researcher

Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.