How Coronavirus May Affect Homeowners Insurance
Whether you are a first-time homeowner or you have owned a home for years and years, one thing you need is homeowners insurance.
Homeowners insurance is important to have as it protects one’s home and belongings in the unfortunate instance a natural disaster like a hurricane destroys/floods your home or if a burglary occurs and items get stolen. Homeowners insurance policies may also include coverage for extra living expenses and medical expenses if one is found liable in an accident.
If you recently acquired homeowners or have had insurance on your home, you may be concerned about how the Covid-19 pandemic may affect your policies.
Good news, it won’t affect it too much.
Covid-19 and Homeowners Insurance
Policy Genius notes that one may have to add enchantments to coverages, such as home business coverage endorsement, as some businesses may have moved from an office building to one’s home.
Due to this, talking to your insurance company about a home business endorsement or a higher coverage limit for business property is integral as you may have your companies, or your own, equipment now moved to your home. And in the case a burglary or natural disaster happens and may destroy the equipment, you want to be covered. Remember, it is always better to be safe than sorry.
Claims wise, adjusters may not come to your home anymore and reliance on photos and videos may become prominent.
People, not your home or belongings, can get the coronavirus, so this aspect of homeowners insurance won’t be affected. However, with spending more time at home, as work has moved off-site and kids are stuck inside, it is a good idea to add liability coverage and/or home to your policy as the chances of something going wrong increases.
Another aspect that can be affected is one’s home-sharing coverage. Airbnb’s have become immensely popular and more people are renting out their homes to people who need a place to stay and don’t want to stay in a hotel room. But the pandemic has decreased the need for people to rent out homes or apartments as people are not traveling as much, therefore you could be paying for insurance you don’t need. So, it is always best to talk to your insurance company and see if you can cancel coverage until things get back to normal.
How Covid-19 is Affecting New Homebuyers
Buying a home is a huge first step into adulthood and although the coronavirus pandemic may be ongoing, if you have a steady income coming in, it is an ideal time to search for a mortgage as some interest rates are at the lowest they have been, says Policy Genius.
However, not many people may have a steady stream of income as millions of people have lost their jobs and have filed for unemployment, therefore making it unattainable to make mortgage or home insurance payments.
On a good note though, many home insurance companies are working with their customers to offer payment solutions and accommodations to new homeowners/existing policyholders who are having a hard time making monthly or annual payments due to the financial hardships Covid-19 has caused.
Home inspections are also affected and this is one of the final steps to getting approved for homeowners insurance. Typically an inspector (adjuster) will look at the interior or exterior of your home. But because of social distancing this can be affected. And due to this, homeowners have the option to opt-out of an interior inspection of their home and only go with an exterior inspection. They will still get an interior inspection at a later date when things are safer.
Conclusion
Although Covid-19 can’t infect your home or belongings, it can affect your livelihood and health. For new homeowners, this may be a scary time financially as now they are worried about coverage and having the financial stability to pay their mortgage and insurance policies.
If you are concerned you need to add or cancel any type of homeowners insurance, contact your insurance company to see what can be done so you feel safe and secure, all while financially stable.
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.