When people enter retirement, they often experience a lot of financial perks, and one of these perks is paying less for homeowner's insurance. If you are about to retire from your job and are interested in learning why retired individuals pay less for homeowner's insurance, here are several reasons this occurs:

Retired individuals are home more

When a person is working full-time, he or she is most likely gone for a good part of the day five days a week. While there are people who work from home, most people work away from their homes. When people retire, they no longer have to drive to work each day, which means they are home more often.

Insurance companies base premiums on risk, and people who are home more often are considered lower risk to insurance companies. People who are at home most of the time are considered lower risk simply because they are there at their homes, and this means that these homes are less likely to experience break-ins and burglaries. Insurance companies reward people who are low risk by giving them lower rates.

Retired individuals often no longer have mortgages

Additionally, people who entire retirement often have their homes paid for by the time they retire. While this factor in itself does not affect homeowner's insurance rates, there is a factor that correlates with this that does affect rates.

When people pay off their mortgages, they will often change their deductibles on their policies. If a person no longer has a mortgage payment to make, he or she may raise the deductible on the policy to a much higher amount. The person could afford to pay a higher deductible simply because he or she would no longer have payments to make for the house each month.

The result of these factors

The result of these factors is paying less for homeowner's insurance. On average, people who are retired will typically receive a discount of up to 10% off their rates. To qualify for this, you might need to be a certain age, or you might have to be retired.

If you are not sure if you would qualify for a discount on your policy after you retire, contact a homeowner's insurance company. Visit sites such as http://gateway-insurance.com for more information. This is a great way to learn more about the discounts you might be eligible for, but it is also a good time to update your policy if you have not done so in several years.