Home insurance post retirement

pterri

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Marcon

pterri said:

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Statistically you are seen as less of a risk as you get older, which is reflected in the premium. Underwriters aren't too interested in whether you are drawing from a pension or an ISA!

pterri

Marcon said:

pterri said:

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Statistically you are seen as less of a risk as you get older, which is reflected in the premium. Underwriters aren't too interested in whether you are drawing from a pension or an ISA!

That’s what I figured, also they probably factor in being in the house more so more secure. I do abuse interest free cards when making big purchases. That may take a hit but that’s a minor inconvenience. 

leosayer

Are we expected to inform insurers about our change from 'Employed' to 'Retired' mid-policy?

DullGreyGuy

pterri said:

Marcon said:

pterri said:

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Statistically you are seen as less of a risk as you get older, which is reflected in the premium. Underwriters aren't too interested in whether you are drawing from a pension or an ISA!

That’s what I figured, also they probably factor in being in the house more so more secure. I do abuse interest free cards when making big purchases. That may take a hit but that’s a minor inconvenience. 

Insurers price on statistics not logic. 

There is likely to be a tradeoff, as there was during Covid when everyone was at home more. Escape of Water, Theft claims etc go down in severity and frequency respectively however accidental damage claims go up.  If however you were already working from home so the frequency of the property being empty doesn't change then it will make very little difference assuming you dont have a high risk profession. 

A quick dummy quote showed almost no difference between employed full time call centre worker in telesales and retired, retired is 1% cheaper than a business consultant in insurance. Add 10 years to your age and there is more divergence between providers, some went 1% cheaper, two others went up 3-5%

Car insurance does start going up again when your hit mid-late 70s

Albermarle

A quick dummy quote showed almost no difference between employed full time call centre worker in telesales and retired, retired is 1% cheaper than a business consultant in insurance. Add 10 years to your age and there is more divergence between providers, some went 1% cheaper, two others went up 3-5%

Although there are some occupations seen as more risky for insurers than others. If you went from one of these to retired, you would presumably see a bigger drop in premiums ?

DullGreyGuy

Albermarle said:

Although there are some occupations seen as more risky for insurers than others. If you went from one of these to retired, you would presumably see a bigger drop in premiums ?

Hence I had mentioned "high risk profession" in the paragraph before

Sarahspangles

pterri said:

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Our home insurance was due for renewal around the time OH retired, it went down slightly from the quote. The premium did not factor in that I work from home, so I assume they thought the risk was lower with someone home during the day.

I know it's better to say 'retired' than 'not working'.

OH let his car insurer know, although he was mid-contract. They said they did need to know but that it wouldn't be reflected in the premium until renewal. It fell 15% with the removal of commuting and a reduced estimated mileage then went up 10% the following year.

This year's proposed premium (it's a linked two-car policy) was a slight fall but we spent a bit of time looking at how we actually use the cars. We've reduced the estimated mileage to 10k between them - we've only done 5k this year but may drive more once I've retired - and removed the courtesy car cover because it's so rare we need both cars at once. It's fallen 35%

pterri

Sarahspangles said:

pterri said:

Hi, a fairly minor point. Are things like home insurance priced differently post ‘retirement’ (or drawing from ISA and not working?). If so any another of those life admin costs very different. Doubt it will affect my decision but curious. 

Our home insurance was due for renewal around the time OH retired, it went down slightly from the quote. The premium did not factor in that I work from home, so I assume they thought the risk was lower with someone home during the day.

I know it's better to say 'retired' than 'not working'.

OH let his car insurer know, although he was mid-contract. They said they did need to know but that it wouldn't be reflected in the premium until renewal. It fell 15% with the removal of commuting and a reduced estimated mileage then went up 10% the following year.

This year's proposed premium (it's a linked two-car policy) was a slight fall but we spent a bit of time looking at how we actually use the cars. We've reduced the estimated mileage to 10k between them - we've only done 5k this year but may drive more once I've retired - and removed the courtesy car cover because it's so rare we need both cars at once. It's fallen 35%

I no longer own a car so won’t affect me but thanks for info. 

Hoenir

Many people in retirement spend more nights aways from home than when they are working. The property may well be less secure. Depending on it's location and accessibility. 

Somebody

DullGreyGuy said:

A quick dummy quote showed almost no difference between employed full time call centre worker in telesales and retired, retired is 1% cheaper than a business consultant in insurance. Add 10 years to your age and there is more divergence between providers, some went 1% cheaper, two others went up 3-5%

Maybe specific to us but we were surprised to find higher premiums when we answered yes to "is your home occupied during the day?"