The Effect of COVID-19 on Renters Insurance

​While it is highly unlikely that COVID-19 will create any structural damages on your property, the current pandemic could still affect coverage, payment, renters, and home insurance utilization. Below are the repercussions of the crisis on renters’ insurance.

The Pandemic Shockwave
One of the most tragic effects of the virus’s spreading is the people’s inability to pay for their property insurance due to financial difficulties. A whopping three million became unemployed on the week of March 16.
Due to this, several insurance companies offered to temporarily suspend payments to their clients with renter and homeowner premiums. They can also receive the benefits of mortgage and rent forbearance on different government levels, including the federal CARES Act.

How to Process Claims 
These accommodations are much like the policies followed by insurers when it comes to natural tragedies, which prevent their customers from paying their insurance but can also cause a sudden spike in claims for damages in the property.

Claims from a different subject of the renter and home insurance have become the town talk since the outbreak began. However, it may seem for various reasons than the typical backlog produced by fires or floods.

If You Stay Home, Will it Lead to More Claims that Need Liability Coverage?
Because almost everyone is spending most of their time at home with the children and the pets compared to before, wear and tear may become regular, along with property damages that may need claim filing. Another disadvantage of being housebound for more than a few months is acquiring bodily injury while at home.

For example, the regular delivery man you trust nowadays while being in quarantine accidentally slips on your porch covered with ice and breaks an arm. This is where liability coverage becomes exceedingly crucial.

Conclusion
Don’t hesitate to discuss this with your insurance company. Ask for a walkthrough of your premium to check whether it’s enough or an overkill. Share your thoughts with your insurance provider and have an honest conversation with them. You might be able to dig up discounts you are qualified for, allowing you to save more.

At AllRisk Auto Insurance, LLC, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (360) 693-4044 or Click Here to request a free quote.