Homeowners can lower premiums, earn discounts during pandemic

Many people worry about how COVID-19 will continue to affect their ability to handle necessities and household bills like homeowner’s insurance.

Across the U.S. an estimated 47 million people could lose their jobs or be furloughed. The unemployment rate may rise to 32% or higher. It’s no wonder that homeowners are worrying.

How will homeowners’ insurance be affected? Immediate changes could come with less home burglaries as many people are home. If a property owner is at home, problems like bursting pipes or water heaters can be handled much quicker, Kin Insurance said. With no visitors, fewer liability claims are likely to occur.

Policyholders shouldn't expect to see lower premium costs as a result.

The pandemic stress spurring a recession could bring more insurance fraud, which can increase rates. The Great Recession had a 9.6% increase in fraudulent claims, according to a Florida Department of Financial Services claims analysis.

That’s all about the future. What about a homeowner who is struggling to just pay bills while facing problems due to the pandemic?

States were told they should make continuity plans to aid consumers, Kin Insurance said. It's important to check how your state responded to this request. In California, policyholders are given 60-day deferrals for making payments with no threat of cancellation during that time.

But don’t just rely on the state. Policyholders concerned about making payments should contact their insurer to ask about options. Carriers like Kin try to help policyholders in these tough situations.

A new insurance policy, whether for a new home or if you’re looking for a new and improved policy, might require a home inspection. With a stay-at-home order in place and social distancing concerns, not many homeowners will want an outsider in their homes. To safeguard both the homeowner's family and the home inspector, the homeowner might be able to conduct their own inspection. Kin is one of the carriers currently offering this option. The homeowner uses a smartphone to take photos of everything an inspector would check. A carrier may allow exterior only inspections at this time.

A pandemic doesn’t stop ordinary life from happening. A homeowner who needs to file a claim can do so.

Immediately upon experiencing damage to the home, take what steps are possible to mitigate the damage. For example, turn off the water as soon as you can if a pipe bursts. Then call your insurer. An insurer like Kin offers virtual inspections during the coronavirus pandemic, which can help to speed claims’ processing. Essential workers can still come out and make repairs and Kin can help sort out the steps to make that happen. 

With bills looming and income possibly dropping or being eliminated, homeowners should consider how to lower their premiums. Look for a new policy to determine if your current insurance is the best price. Recommendations from people like your real estate agent or mortgage lender won’t always lead you to the lowest premiums.  A Florida homeowner might even be shocked to discover the policy doesn’t include coverage like hurricane insurance.

Homeowners making a switch save an average of $500 a year, Kin Insurance said.

To cut insurance bills more, make the home safer. Water leak detection devices, smart home security systems, fire alarms and proper storm shutters can reduce risk exposures. It can also make the home eligible for insurance discounts.

An increase in the deductible reduces premiums because your insurer pays out less for covered claims. Even a move from $500 to $1,000 deductible can make a difference. But only take on a deductible you can afford with short notice.

Ask for other discounts to make sure you get everything available, Kin Insurance suggests. Start asking when you get an insurance quote.