The COVID-19 pandemic is affecting many things from travel plans to small businesses and presents a host of financial hardships for the foreseeable future. With so many unknowns, we decided that it is useful for you at this time to understand why your home insurance is so important given the present circumstances. After all, the purpose of insurance is to defend you and your family from significant financial losses or detriment.
Home insurance itself is a form of property insurance which protects both the homeowner and their dependants from major financial losses as well as provides liability coverage for any accidents which could happen on your property. Like any insurance policy, home insurance has limits and restrictions. For instance, if you operate a small business or work from home, your home insurance may not cover any business-related incidents or liability cases. In this case, you will need to inquire about a home-based business insurance endorsement.
Home Insurance: Protecting Your Biggest Asset
Insurance is all about managing your risks and exposures. When you agree on a home insurance policy with your provider you are essentially transferring that risk. During the current circumstances, home insurance is more important than ever. If something were to happen and you could not afford repairs it would be difficult to find a place to go as a result of quarantine procedure in most countries. By working with a home insurance broker and acquiring the coverage necessary to protect you and your family from unexpected losses you can be sure you are in good standings if anything should happen – which is an especially well-received comfort during this time.
Of course, while having insurance is great, home maintenance is an essential component to ensuring you are at less of a risk of anything happening which could result in financial losses. If you are working from home or are currently unemployed now is an excellent time to ensure your home is up to date and all its assets and systems are working properly to avoid any mishaps. This can also help to put your mind at ease for the coming weeks so that you have one less thing to worry about. Moreover, a well-maintained home is cheaper to insure! Your home may be eligible for certain benefits or discounts so long as you include certain features or measures in the upkeep of your home. Discuss with a home insurance broker about more ways you can better look after your home during this time and ask about what discounts you may qualify for.
Working from Home During COVID-19
Ordinarily, if you were to operate a home business, you would need to acquire a home-based insurance endorsement. Otherwise, working from home once in a blue moon isn’t something you should worry too much about. However, due to the new self-isolation procedures as a result of the COVID-19 Pandemic, more and more working professionals have had to use telecommute and online commerce in order to maintain business. This means that the number of individuals working from home has skyrocketed. Certainly, while home insurance can cover some of your electronics, personal belongings and liability, it may not be adequate enough to cover company property.
So what should you do if you are working from home due to self-isolation procedures? Contact your home insurance provider. They will be able to discuss your situation with you and determine whether or not you may need to extend your existing coverage so that all your assets are protected.
Financial Challenges Resulting from COVID-19
The current circumstances pose challenges like we have never faced before. If you and your family are struggling financially due to the impact from COVID-19, your insurance provider is there to provide assistance and solutions. It is strongly encouraged that you update your provider on all the new adjustments you have made, i.e: if you are now working from home, no longer have a significant commute to your job, and so on. It is always highly recommended that you provide regular updates as the situation changes.
It is advised during this situation that you keep your home insurance provider up to date on your situation as well as inform them of any changes you have made to your lifestyle and how the current circumstances are impacting you and your family. These forced shutdowns in many areas have affected all of our lives and your insurance provider may be able to provide you some helpful insight as to how you can maintain your existing coverage or extend it in order to provide some financial protection against these new threats and exposures we may face.
Discuss with your broker about what constitutes as a loss in these circumstances so that you understand what is covered by your home insurance and where you may need to make adjustments. If you are working from home during this time, managing your home insurance is especially important.