Does Your Homeowners Insurance Cover Coronavirus?

Many may have wondered how homeowners' insurance has been affected by the ongoing novel coronavirus (COVID-19) pandemic. While the virus has a greater impact on other types of personal insurance, such as life, health, and auto, some aspects of homeowner's and renter's insurance can be complicated.

What Impact Does The Coronavirus Have On My Home Insurance Billing And Service?

Previously, many insurance companies waived late fees and suspended service cancellations for customers who couldn't make payments due to the coronavirus pandemic. Several insurance companies provided grace periods to policyholders who had plans in place before July 1, 2020. Residents of the hardest-hit states can find specific resources online by contacting their agents or representatives.

Among the insurers that have changed their payment policies are:

State Farm: No specific services for homeowners insurance are provided.

Allstate: No specific services for homeowners insurance are provided.

Liberty Mutual: After waiving late fees, the company is resuming on-site damage inspections for homes in less affected states.

Travelers: Policy cancellations due to non-payment have resumed. Payment plans may, however, be made available.

USAA: Policy cancellations due to non-payment have been reinstated. Payment plans may, however, be made available.

Farmers: Provides extended and expanded identity fraud coverage for homeowners who have a homeowners insurance policy that includes the service.

Notably, some Erie homeowners insurance customers may be eligible for coverage for unused gift cards due to the COVID-19 pandemic. If you have a gift card for a locally owned and operated business that closes within a year, you may be eligible for reimbursement of up to $250 per card, for a total of $500. This feature will be included in standard policies at no cost.

The pandemic has also had an impact on how policyholders can file claims. Customers will now face longer wait times and will be required to submit more information electronically, such as photos or videos. If you need to file a claim, contact your insurer online for information on the new process.

In most cases, insurers have suspended in-person visits by insurance adjusters. While adjusters will still come to your home in an emergency, such as if there is ongoing water damage, insurance companies have moved their claims process online. Some companies, such as Liberty Mutual, offer virtual home visits with the homeowner's permission.

Will My Homeowners Insurance Cover Me If I Work From Home?

Because of the coronavirus pandemic, many Americans are working from home. The extent to which your homeowners' or renter's insurance covers these activities depends on your specific circumstances.

A business is defined as any professional activity that earns more than the amount specified by your provider, which is typically around $2,000 per 12-month period.

Homeowners' and renter's insurance policies typically cover only a limited amount of commercial property. Homeowners insurance, for example, only covers a portion of the personal property used for business — up to $2,500 for most properties, including $1,500 for electronics away from home.

While your policy may cover a damaged laptop or screen you brought from the office, it may not cover the full cost of replacing technology or specific tools. If you brought a lot of equipment home and it gets stolen or breaks, you may have to pay some expenses out of pocket.

Can You Be Sued If You Make Someone Sick?

While your liability insurance covers lawsuits brought against you or injuries to others, does not cover infectious diseases, you are unlikely to be sued for making someone else sick. In most cases, proving that someone's actions caused infection in another person is simply too difficult.

The only reason COVID-19 might cause you or your family to engage in riskier behavior than usual is if it causes you or your family to engage in riskier behavior than usual. For example, because walks are one of the few options for exercise, your dog may be more likely to bite a bystander.