Effect of Covid-19 to Renter Insurance

​Despite the halt in business operations and economic activities brought by the Covid-19 pandemic, rent expenses for tenants continue to escalate. People stuck in their apartments or condo units in obedience to quarantine protocols need protection for their belongings to lessen the costs if instances such as accidental damage, burglary, or misplacement took place.

1. What Is Renter Insurance?
   Renter insurance is “a type of insurance policy for people who rent an apartment, condo, or some other type of home and want to protect their personal property from accidental damage, break-ins, or other covered losses; be covered for personal liability coverage if something happens to a guest in their rental property; and be reimbursed for extra living expenses if they have to temporarily relocate after a catastrophic event,” as defined in a news report.
   
   
2. Covid-19’s Effect on Renter Insurance Payments
   Considering the hardship for policyholders to earn income during this crisis brought by the Covid-19 pandemic, some insurance companies decided to offer a temporary suspension of insurance payments. Moreover, other companies urged a 60-day grace period for insurance premium payments.
   
   
3. Claiming Process
   Because of the work-from-home set up and quarantine protocols, insurance agents have a hard time assessing such claims. Nevertheless, some still perform exterior inspections, while others do virtual checks through a video call. Compared to homeowner insurance, renter insurance is hassle-free to claim by simply providing evidence of loss or damage through photos or videos.
   
   
4. Housebound Leads to More Claims
   With people spending the whole day at home, “regular wear and tear may as well compound into property damages that require the filing of claims.” The more time people spend in their apartments or condo units, the more likely something, like accidents or loss, may happen. Despite this fact, policyholders should consider that small claims could result in high premiums.

Conclusion
Among the repercussions of the Covid-19 pandemic is its impact on the renter insurance industry. The quarantine protocols that forced people to stay at home affected the insurance payments as well as the claiming process. Despite these changes, policyholders should still maintain renter insurance to protect their belongings from such misfortunes.

At Hayek Insurance, we do our best in making sure 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.