As the pandemic continues into its second year, many people continue to face hardships from furloughs and lay-offs. Because of that, people are still having trouble paying their monthly bills and are looking for ways to cut down on expenses. This has led to an examination of insurance coverages that help ease the Covid-19 financial burden.
The Impact on Homeowners Insurance
As employees shift to remote work, some insurance companies are offering new forms of coverages to account for potential gaps in standard homeowner policies. Spending more time at home may leave you vulnerable to insufficient coverage for business property and liability expenses. Speak to your agent to understand what your homeowner’s policy covers and consider adding coverages, as necessary. While you might see increased premiums, raising the coverage may be necessary to recoup potential losses.
Of course, there may be extra coverage not in use that could be done away with for the time being. For example, homeowners that carry supplemental coverages for home-sharing could be paused while social distancing remains in effect. If a homeowner rents portions of their property out like on Air BnB or other vacation rental apps, those coverages could be reduced for the time being. Though it’s important not to cancel the policy altogether in the case of a potential fire or storm damage.
The Impact on Auto Insurance
While Covid-19 remains ineffectual against overall insurance premiums, it is still worth it for auto-owners to consider reducing the extra coverages on their vehicles. However, it is also not recommended to cancel a vehicle policy completely as there is still the potential of damage to a parked car either from storm damage or another moving vehicle. Consider speaking with an agent to determine the level of coverage you need based on your current driving habits.
In some cases, supplemental coverages may be encouraged. This is especially the case for drivers looking to make an income on service apps like Uber or Door Dash. In this case, special forms of coverage are required to be employed with the company either by the state or the company itself. Check with your agent to determine what coverages may be required.
Cutting down on unecessary coverage can be a great way to help ease the financial burden during the pandemic. If further assistance is required, many insurance companies are extending grace periods or even offering rebates on premiums. Speak with your agent about the many options available to you and consider using this opportunity to reduce coverages where applicable.
Do not completely cancel coverages, however. The risk far outweighs the out-of-pocket costs incurred by having no or too little coverage on your home or automobile.