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Seniors are more susceptible to overpaying for home insurance

Across cohorts, policyholders with low credit scores were disproportionately impacted by rising home insurance rates.

"The housing market, the cost of materials, and the cost of labor were on the rise even before COVID-19. We're now seeing those increases reflected in the estimated replacement cost of the home (Coverage A), which ultimately drive increases in insurance premiums, among other factors,” said Ben Madick, of Matic Insurance Services, Inc. “While homeowners with lower FICO scores experienced a disproportionate increase, they are receiving better coverage and the gap between premiums and Coverage A is closing." (Credit: Victor Moussa/Shutterstock) “The housing market, the cost of materials, and the cost of labor were on the rise even before COVID-19. We’re now seeing those increases reflected in the estimated replacement cost of the home (Coverage A), which ultimately drive increases in insurance premiums, among other factors,” said Ben Magick, of Matic Insurance Services, Inc. “While homeowners with lower FICO scores experienced a disproportionate increase, they are receiving better coverage and the gap between premiums and Coverage A is closing.” (Credit: Victor Moussa/Shutterstock)

While they don’t have the highest average premiums, senior homeowners are the most susceptible demographic to overpaying for home insurance, according to premium trend research by Matic Insurance Services, Inc., which also found consumers with low credit scores are being disproportionately impacted by growing home insurance rates.

Policyholders in the 43-55 age bracket saw the highest average home insurance premiums. However, the average premium for seniors does not drop proportionately. A failure to regularly check home insurance policies and accept annual premium increases, which can add up over time, result in seniors overpaying, Matic reported.

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Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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