Impact of Covid-19 Pandemic to Homeowners Insurance

​The spread of Coronavirus diseases forced everyone to stay at home. With parents starting a work-from-home setup and children having online classes, home is the only safe place to stay. Hence, having homeowner insurance is essential during this pandemic.

1. What Is Homeowners Insurance?
It is financial security that protects personal assets at homes such as the structure, home equipment, and other belongings whenever the house is damaged or burglarized. If one is held liable for an accident, homeowners insurance also covers legal and medical expenses.

2. Effect of Covid-19 to Homeowners Insurance
Covid-19 pandemic does not entirely affect homeowners insurance, but somehow affects some coverage due to temporary life changes. There will be no changes in property coverage simply because home and personal assets do not get infected by the virus. Even so, the reality that a family’s daily activities only happen at home could demand the policy for more liability coverage or home business coverage. 

• Personal Liability Coverage
  Personal liability coverage is a portion of the homeowner’s insurance policy that makes up for legal expenses. Homeschooled kids or playful pets who may be wandering around the neighborhood, and causing injury or damage to property is under the policyholder’s responsibility. Hence, they should assure that personal liability coverage encompasses these even up to its limit.
• Home Business Equipment Coverage
  Homeowners insurance also protects business assets but only to a specific limit. Having limited coverage may not be enough for businesses forced to operate at home. Checking if the insurance company offers a home business endorsement or higher coverage for the business property will help policyholders in maintaining their businesses.

3. Homeowners Insurance Companies’ Response to Covid-19 Pandemic
Response to combat the economic crisis caused by the pandemic varies from company to company. In some companies, they offer payment plans and waiving of reinstatement fees if policy lapses and the policyholder was unable to pay. 

Conclusion
The Covid-19 pandemic forced everyone to stay at home since it is the only safe place where all business and educational activities can take place. Hence, it is vital to contact the homeowner’s insurance companies to assure that one’s policy protects everyone and everything at home.

At UG Brokerage Insurance Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (718) 848-7777. You can also request a free quote by CLICKING HERE.