Homeowners Insurance Post Pandemic-What’s Different

Q: Prices of lots of things have gone up since the pandemic, should I expect to pay more for my homeowner’s insurance also? Eddie, Holmdel, NJ

A: Insurers worldwide are constantly recalibrating the risk they insure for particularly now in the wake of the COVID-19 pandemic, which has changed many things in the world of insurance.  The pandemic has reduced the risk of burglaries from happening because people have been home more often. The constant presence of residents also makes them more likely to immediately notice and address any structural problems on their property, which lowers the likelihood of filing claims.  At the same time, one unexpected consequence of the pandemic was the rise in sewer backups–sewer backup coverage is one item that you may consider adding to your existing homeowner’s coverage if it does not include it already.  People who have found themselves working from home may consider adding a home business endorsement to their homeowners policy or getting a separate policy.  Every homeowner insurance policy is different, so reach out to your insurer and go over your policy so you know exactly what it covers and what it does not cover.  Also ask your insurer about available discounts (i.e. for smart-home features like devices that detect water leaks)-believe it or not, you may be able to lower your homeowner insurance premiums.  Thanks for your question, Eddie.

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