How Has COVID-19 Affected Home Insurance?

COVID-19 broke out in China at the end of last year, and is now a global pandemic. This has forced businesses to change the way they function, with many of them closing down. On top of that, more and more people are working from home to stop the spread.

The ongoing health crisis doesn’t mean that accidents at home have stopped happening, or that weather disasters have abated. These events continue to happen independently of the pandemic. There might even be an increased rate of accidents at home because people are spending more time inside.

This has led to insurance agents introducing consumers to the value of homeowners insurance. But it’s crucial to keep in mind that COVID-19 has also impacted homeowners insurance policies as it has every other aspect of life.

Considerations That Insurance Carriers Need To Make
As people continue to stay at home, or even in areas where businesses are slowly reopening, insurance carriers might see a shift in the kinds of claims they receive. Minor claims that involve water damage have increased, for example, due to increased usage at home. However, staying at home also means that homeowners will potentially spot signs of damage that might have otherwise led to a full-blown disaster.

The kind of claims might be changing, but the frequency isn’t. Insurance companies need to respond instantly; they can’t afford a backlog because customers live in the place of disaster (i.e., their home) 24/7. This is why they need to introduce instant text messaging and online quote features to manage claims and lessen in-person visits.

The Perspective Of A Homeowner
The pandemic may have decreased the number of people buying new homes, which used to be the primary motivator of shopping for home insurance. But it is also essential to understand that many people have also been laid off and are in a financially challenging position right now where they cannot afford their coverage. This compels them to seek coverage at lower prices.

homeowners carrying two boxes out of the house

The prices of homeowner insurance policy vary from one company to another. Homeowners need a policy that saves them money now and also when a claim needs to be made. Hence, they look for insurance companies that provide reliable quotes, offer good coverage at an affordable price, and have strategies to limit in-person contact.

What Insurance Agents Need
Insurance agents are mostly working from home. This has changed how they usually interact with potential clients: personal referrals and in-person networking.

Talking about their job provides agents with an opportunity to foster new relationships and form networks that eventually leads to sales in the future. Without networking, agents need their insurance carriers to deploy strategies that help them carry out their tasks. They need a faster way to deliver quotes, gain more face time with clients to advise them on coverage options, and focus on business-building plans.

If you’re looking for an insurance company that can help you cope with this new reality, get in touch with our team at Western Mass Auto Insurance. We provide a range of Insurance Services Springfield MA, including homeowners and apartment insurance, auto insurance, commercial vehicle insurance, and more. You can contact us at (413) 781-3800  to learn more about our insurance policies!

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