Does Your Personal Homeowners Insurance Cover COVID-19?

With the coronavirus still very active, you may be interested in knowing whether or not your home insurance covers you if the worst were to happen. Other forms of insurance such as health, auto and life insurance may be more easily affected by the virus. Where as homeowners insurance can get a little more complicated.

Typically, homeowners insurance and renters insurance will be more than likely to see the effects of COVID-19 show up in areas regarding billing or potentially claims service. 

How exactly will the coronavirus pandemic affect my home insurance?

Your homeowners insurance will more than likely be affected through billing and claims service when it comes to the coronavirus pandemic. Previously, there were many homeowners insurance companies that waived late fees and even went as far as to suspend service cancellations for their clients that could not make their payments. 

Additional, there were many home insurance companies that offered grace periods to customers that had policies before July, 1 2020. 

A few of the homeowners insurance companies that may have adjusted payment polices will include;

• State Farm – No specific services offered for homeowners insurance.
• Allstate – No specific services offered for homeowners insurance.
• Liberty Mutual – Previously waived late fees, starting to resume on-site damage inspections for homes in less affected states.
• Travelers – Policy cancellations for non-payment have resumed. However, payment arrangements may be offered.
• USAA – Policy cancellations for non-payment have resumed. However, payment arrangements may be offered.
• Farmers – Offers extended and expanded identity fraud coverage for those with a homeowners insurance plan including the service.

How has the pandemic effected the claims process?

The coronavirus pandemic has effected the way policyholders can submit claims. For the most part clients can expect longer wait times and required to submit more information online than before the pandemic. Every homeowners insurance company will have different rules and regulations regarding this, so please reach out to the home insurance company that you have your policy through to get very clear advice on their process. 

There are a few homeowners insurance companies that have completely done away with in person visits with insurance adjusters. Insurance adjusters will still visit your home but there is a big push towards the transition to submitting documents, photos and videos electronically. Some home insurance companies are moving to virtual home visits. 

Does my homeowners insurance policy cover my while I work from home?

As the coronavirus became more wide spread last year there was a pretty big transition to the work from home model. When it comes to using your home as your business there are a few things you may want to know. 

Your renters insurance and homeowners insurance will provide very limited coverage if your home is used for business purposes. If you generate more than $2,000 within a 12 month period of time, your home might be considered a business. Your home insurance will only cover a fraction of the personal property used for your business. Typically up to $2,500 for most property, including around $1,500 for electronics away from the home. 

This may mean you’re covered if your computer is damaged, but it may not cover the replacement of the technology. If you just so happen to bring a lot of equipment home and it is stolen, more than likely you will have to cover some expenses out of pocket. 

Will my homeowners insurance policy cover any lost rental income?

If you use your home for home sharing income your homeowners insurance policy may cover a portion of the lost revenue. Although, there are plenty of restrictions with using your home insurance this way. This is due to home sharing potentially being viewed as a small business. 

In your policy’s loss of use coverage, it states your home insurance can provide reimbursements for rent that is lost due to a government order. Some of the communities that have restrictions on the incoming tourists and travelers may fall under this provision. As long as home sharing isn’t considered a business. 

If you happen to qualify for loss of use coverage, it is very common that home owners insurance companies will only reimburse you for a few of the weeks after a government order is rendered.

If you have questions regarding homeowners insurance and live in the Sacramento area, please give us a call at 916 313 6100. We have some of the best home insurance agents in the business and they are waiting to help you get better coverage today!