How COVID-19 May Impact Your Homeowners Insurance Coverage

Due to the unexpected pandemic, many of us have spent additional time working, learning, or quarantining at home. This means that now is an excellent opportunity to assess your homeowners' insurance coverage despite any lifestyle adjustments you've made in the last few months.

Here are some suggestions to assist you in safeguarding your valuables and regaining some peace of mind.

Examine Your Current Insurance Coverage.

Begin by examining your current policy and its coverage restrictions. A standard homeowners policy protects your house and personal belongings against loss or damage caused by a covered event, such as theft or the house burning down. Ascertain that your insurance covers the cost of repairing or rebuilding your home and the cost of replacing your property at its current worth. Additionally, a typical policy protects your assets against liability claims if someone, not a household member, is wounded accidentally on your property, and you are judged legally responsible.

Consider the Following Critical Factors:

Consider the issues below when you examine your insurance; they have altered how many of us work and live, necessitating an update to your coverage.

Working from home: Are you protected from your work computer, equipment, office furnishings, supplies, and critical documents? Your current policy may include business property coverage, but only up to a specified dollar amount. Most policies exclude coverage for damage to property that you do not own. Additionally, if your home wireless network is less secure than your actual office network, you may be more susceptible to cybercrime or data loss. Consult your employer first to determine what benefits they provide to workers who work remotely. To cover your work property and space, you may need to add a home business endorsement to your policy.

Along with online schooling, children are spending more time at home, resulting in an increased risk of property damage. Ascertain that your coverage covers any school computers or other devices. If your neighbors' children are spending more time at your house — whether for learning pods or backyard playing — you may want to consider increasing your liability limit.

Additional occupants in your home: If a loss of income has forced relatives or adult children to move in with you temporarily, consider their personal possessions. Because most policies exclude damage to personal goods in your house that you do not own, these individuals may require their own renter's insurance to protect their belongings.

Renting your house or vacation property: If you previously rented your home, a room in your home, or another property you owned and were unable to continue due to the epidemic, you may be able to amend or stop your policy to save money. Consult your insurance agent to determine your alternatives.

Recent improvements to your home include the following: Many people concentrated on house improvements during the stay-at-home requirements. If you've expanded on to your house or made changes, such as a kitchen remodel, contact your insurance agent so that your policy's coverage is updated to reflect the additions or modifications.

If you do need to file a claim, the process may take slightly longer than usual due to social distancing limits and remote adjustors. While submitting a claim online has become more frequent, many adjusters cannot enter homes to assess damage or conduct inspections. You may be required to submit video or photographs or organize a virtual appointment.

How to Reduce Your Insurance Premiums

If the pandemic has put a strain on your household budget, you may be eligible for savings offered by some insurance carriers. Consult your agent to determine whether you qualify for a multi-policy discount, a hail-resistant roof, or a claim-free history discount. If you've sold some of your assets, check if you're still paying for personal property you no longer own.

What If You Are Unable To Pay Your Insurance Premiums?

If you are having financial difficulties due to the epidemic and are unable to pay your premiums, call your insurance provider immediately and explain your current circumstances. Numerous businesses now provide forbearance or flexible payment plans. Regulators at the state level may also offer relief schemes like grace periods or postponement.

Even if the pandemic did not affect your house, finances, or way of life, it's a good idea to examine your policy annually. Your insurance agent may be a great resource in assisting you in evaluating your current policy and making any adjustments to ensure you have the appropriate coverages in place.