Perhaps you’ve just become an empty nester, landed a job in a new city, retired from your career, want to pursue a minimalist lifestyle or just need a change of scenery. It’s finally time move into a smaller space. Many people downsize to save money, start fresh or live more simply. While there are many benefits to downsizing, it’s important to consider all factors beforehand to ensure it’s the best move for you.
According to Senior Lifestyle, more than 40% of Americans ages 50 and older plan to move within the next five years. By the year 2030, Baby Boomers will release about 26 million homes into the housing market, freeing up space for others to purchase a home. According to the U.S. Census, there are more than 2.7 million housing units in the state of Wisconsin, 67% of which are owner-occupied. And with 17.5% of the Wisconsin population being 65 years or older, there are plenty of potential moves on the horizon.
Moving into a smaller home is, by no means, a downgrade. It’s often a wise option that allows people to save on mortgage payments, property taxes, utilities and maintenance. It also alleviates the stress of having to maintain a larger area. Less square footage means fewer headaches. So, what does downsizing ultimately mean for your home insurance? Here are some tips to consider while altering your customized home insurance policy.
Personalize your plan
To start, make sure that your potential new home insurance policy covers the full value of the home – including personal possessions, liabilities, injuries, damage and repairs. The coverage you receive is specific to the property itself. Every situation is unique with various levels of risk.
Eliminate unnecessary costs
As you begin the downsizing process, you’re likely paring down and getting rid of some things you own. These items will no longer need to be covered by your insurance. For example, you may no longer need specific endorsements or scheduled property for valuables, furniture, art or other expensive belongings. While you’re taking inventory of your belongings, make sure you update your home inventory of anything you’ve eliminated during the downsize.
The physical location of your new home also affects your insurance premium and can vary between neighborhoods. If you plan to move to a safe area with lower crime rates, then your home insurance may cost less due to lower risk. Your home should be your safe haven. Talk to your agent to get a better understanding how it could affect you specifically.
Bundle up to save
It’s also a good idea to consider and ask your agent about any available home insurance discounts and bundles. For example, you can bundle your home insurance with your car insurance to save some cash. Rural Mutual offers a variety of premium saving discounts to help keep your assets protected at a reasonable cost.
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