Hayek Insurance Blog
The ongoing COVID-19 crisis has dramatically affected American industries, including renters insurance. Millions of Americans are currently experiencing financial hardship. Therefore, it makes them unable to pay for the insurance of their property.
Pro-consumer Adjustments from Insurance Companies
These companies are wisely suspending payment to ensure that their clients have enough money for a home or apartment until they can get back on their feet. While some states, like California, have not been able to be as generous with their welfare system and are only offering a 60-day grace period on payments.
What Consumers Can Do
If you can't pay your rent, working out a good deal with your landlord is likely the best way to reduce your rent payments for now, or you can commit to paying a partial amount of rent each month.
What If Someone Allegedly Catches COVID-19 in Your Property
COVID-19 does not only threaten people's health but also their insurance. Yet this might not necessarily be an issue for home and renter insurance providers to solve. Many homeowners' and renter's insurance policies have virus and pathogen exclusions.
Impact of COVID-19 on Short-term Rentals
Short-term rental hosts experienced a significant decrease in reservations due to stay-at-home orders and transportation restrictions. Soon after, most essential healthcare workers who needed to travel to hard-hit areas have booked short-term rentals. But some local authorities were not pleased with the increase of travelers in town, believing these guests could very well be bringing the virus with them.
Rental hosts began contract tracing as they feared a possible strike of cases due to increased bookings for one-night gatherings. As a result, new restrictions were added.
What To Expect in The Future
The impact of COVID-19 may result in revisions to existing policies and the development of new ones. Some experts think there might be government-sponsored pandemic-type insurance. Insurance companies will play a critical role in mitigating the devastating human and economic effects of future pandemics.
A pandemic could be the catalyst for homeowners to evaluate their insurance and cut costs. It's always better to talk to your insurance provider and walk through your coverage and what more you and your insurance provider could do.
At Hayek Insurance, 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 (805) 496-8835 or Click Here to request a free quote.