Does Your Homeowners Insurance Cover Coronavirus?

You may be wondering how your 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 homeowners and renters insurance can be complicated.

The effects of the coronavirus pandemic are most likely to be seen in areas related to billing or claims service for homeowners and renters who have insurance.

How does the coronavirus affect 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 locate specific resources by contacting their agents or representatives via the internet.

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 - 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 - 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 as a result of 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 a 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 stopped sending out insurance adjusters in person. 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. With the homeowner's permission, some companies, such as Liberty Mutual, offer virtual home visits.

Will homeowners insurance cover working from home?

Because of the coronavirus pandemic, many Americans are working from home in some capacity. It is highly dependent on your circumstances whether your homeowners or renters insurance covers these types of activities.

Homeowners and renters insurance policies typically cover only a portion of commercial property. For example, homeowners insurance only covers a portion of personal property used for business — up to $2,500 for most property, including $1,500 for electronics used 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 for getting someone sick?

While your personal liability insurance, which covers lawsuits brought against you or injuries to others, does not cover communicable disease, 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.

Does homeowners insurance cover lost rent from home-sharing?

Some people who earn a portion of their income from home-sharing may be able to recover a portion of their lost revenue through their homeowners insurance. However, because home-sharing is considered a small business, there are some limitations to using your insurance in this manner.

Your homeowners insurance policy's loss of use coverage may provide reimbursements for rent that is lost due to a government order. As long as your home-sharing isn't a business, communities with restrictions on incoming travel may fall under this provision.

If you qualify for loss of use coverage, insurers will typically only reimburse you for a few weeks after a government order is issued.

Insurers control the coverage they provide for home-sharing, with limits on how much money you can make from renters and how frequently you share your home. You can't make more than $2,000 per year and get loss of use coverage, for example, because your home is considered a business.