Homeowners Insurance in The Time of COVID-19
With workplaces closed and the majority of the population stuck at home, it’s quite apparent that COVID-19 has upended the way we live our daily lives.
Many of us are already starting to worry if we can survive this crisis financially. If you’re a homeowner, you also might wonder if the Coronavirus will affect your home insurance in any way.
Read on to find out the answers to FAQs about COVID-19 and how it affects homeowner’s insurance.
Will the current pandemic affect home insurance premiums?
If you look at things from a home insurance standpoint, the COVID-19 outbreak could reduce the risk of property loss, break-ins, and severe structural damage to the home. This is because most people are staying at home and are likely to notice and address incidents before they get worse.
Uncertain times like this, however, may trigger civil unrest and result in a significant increase in insurance claims. If this happens, insurance companies may be compelled to raise the rate of their premiums.
Still, the quarantine has only been going on for six to eight weeks. We need more time to tell for sure if the Coronavirus will have any effect on home insurance premiums, and the industry as a whole.
Should I increase my home insurance coverage?
As alarming as this health crisis is, it does not really have any direct impact on your home or belongings. That being said, your existing home insurance coverage should be enough, but this depends on your individual and family circumstances.
Are you or any of your family members working from home because of the pandemic? If so, you may want to consider a home business endorsement or a separate policy for your home-office equipment, especially if these assets amount to more than $2500.
Other than that, it would be great if you also think about increasing your liability coverage. With more people going around the neighborhood and delivery services becoming the new normal, accidents and injuries are more prone to happen. And if they occur within your property, it’s on you. Higher liability coverage will protect you from these risks.
How do insurance providers handle inspections these days?
If you just bought a new home or shopping around for a new policy, then you may want to know if insurance companies still conduct inspections given the situation we’re in.
Well, yes. If you purchase home insurance right now, chances are, you will still have to go through an inspection. Don’t be too concerned with breaking quarantine or social distancing rules, though, because it’s likely going to be a virtual inspection.
Most insurance providers nowadays offer self-serve inspections. All you have to do is send them a photo or video of your home and belongings for assessment.
How do I process claims during the pandemic?
Virtual inspections are already a thing, which means virtual claims are, too. Insurance companies have been implementing an online claims process way before this pandemic started.
To file a claim, you have to sign in to an app or website and write a detailed report of what was lost or damaged. Of course, you need to provide photos and videos for proof. After submitting the claim, all you have to do is sit back and wait for the insurer’s feedback.
What if I can’t pay my home insurance on time?
The Coronavirus spread has put millions of families in dire financial straits. Many households are struggling to maintain their usual lifestyle, which means keeping up with their insurance obligations is the least of their worries.
If you’re going through financial issues and worried about not being able to pay your home insurance on time, get in touch with your insurance company. In response to the current crisis, insurance carriers around the country are implementing a temporary payment suspension or offering their clients with a 60-day payment deferral option.
You don’t have to give up your home insurance to make it through this pandemic. Talk to your agent about possible grace periods and payment arrangements.
About the Author
Rachael Harper is the Content Marketing Strategist of Bennett & Porter, a wealth management and insurance firm based in Scottsdale, Arizona. When not writing, she makes use of her time reading books and playing bowling with her family and friends.
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