The Pandemic's Impact on Landlord Insurance

​The COVID-19 pandemic has struck the economy to the point where it forced several insurance providers to change their policies. Among those that have altered their service coverage are companies selling landlord insurance policies.

Landlord Insurance During COVID-19
The pandemic has become difficult for everyone, and people want to do their part and help each other. It is the landlord's choice if they're going to help a tenant through this tough time. Here are how landlords can help and how it can affect their landlord insurance:

1. Reducing rent
   If a landlord decides to reduce rent, they cannot demand the difference in payments (for example, if you minimize rent from $500 a week to $250, your insurer cannot recover the additional $250 a week. However, you might have a claim if the occupant continues to default on the newly agreed-upon number.
2. Putting rent on hold
   If a landlord wishes to postpone rent for a few weeks until the tenant gets on their feet, this will not be protected because it is a shared arrangement and not an insured incident. However, standard procedures should kick in if the tenant does not keep up on payments, and then it will fall under rent loss, and the policy will respond.
   
   

Changes You Should Know
Many landlord insurers have put an immediate ban on rent default cover and tenant cover theft in light of the COVID-19 pandemic. As insurers monitor the unfolding situation due to COVID-19, limitations will continue to be in effect.

Some businesses are also withdrawing protection for losses incurred by the tenant, which may include things such as:

• Accidental damage incurred by a fall by the occupant or their visitors, such as a broken wooden door.
• Malicious harm by a resident or a visitor, such as property trashing, graffiti, and other malicious acts of vandalism.
• Throwing away things that are left by former tenants.

Conclusion
A property is a landlord's source of income and an investment that needs to be secured. That's why landlords need a comprehensive insurance policy that covers several conditions; one that is explicitly designed to protect themselves and their house.

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.