Will My Home Insurance Policy Cover Me for COVID-19?

Most Canadians stay home to avoid the risk of contracting or spreading the coronavirus, and that is an advantage. The federal government and public health and wellness authorities have consistently made it clear that one of the most effective ways for us to reduce our risk of catching COVID-19 is to stay home until further notice. But life in lockdown raises questions about whether home insurance or condo insurance will cover you for a pandemic like COVID-19.

In other words, is a pandemic considered dangerous as long as your home insurance coverage is a concern? Known in the United States as the “Act of God,” in Canada, the insurance industry describes the Acts of God as “danger.” According to the Insurance Bureau of Canada (IBC), a hazard is the possibility of an unforeseen and unintentional event.

Home insurance coverage is not a maintenance contract. You are not protected for the progressive wear of roof shingles, due to circumstances. Home insurance protects your home and belongings against monetary loss if they are damaged, spilled, or stolen. It can also cover living expenses if you are briefly unable to live in your home due to a guaranteed loss. Most standard plans cover you against monetary liability in the event someone is injured in your home, or if you cause damage to someone else’s property.

What Types of Home Insurance Coverage Are There?

The IBC describes different types of home insurance coverage for residential or commercial property, components in your home, and individual liability. It consists of:

  • Basic or Called Perils. Also known as a standard plan, this kind of plan will only cover clearly defined hazards, such as damage from termination, wind, and certain types of splash and smoke damage.
  • Extensive Plan. This type of plan offers more coverage than the basic plan, but much less than what the extensive plan provides. This covers you for the cost of trouble to the house as well when it comes to your components that are exposed to the so-called hazard.
  • No frills. No-frills plans are simple variations of the basic plans that some insurance providers offer for residential or commercial homes that may not meet normal insurance requirements. This type of plan does not consist of coverage for harm.
  • Large. It is one of the most comprehensive home insurance coverages, covering both your home and its components for all perils and hazards, with the exception of omitted hazards such as earthquakes or back-up plumbing. You have the option of purchasing additional protection for these types of hazards.
  • Individual Responsibility. Whether you are a property owner or tenant, individual liability coverage covers you if you are directly liable if someone who visits your home is injured, or if accidental property damage is caused by someone else. For example, if someone slides, falls, and is injured due to ice in your home, individual liability coverage covers the costs of the trouble arising from that injury up to the limit of your liability. However, it does not cause any injury to you or other participants from your home experience.

What is Omitted from a Home Insurance Plan?

Will My Home Insurance Policy Cover Me for COVID-19?

There are several types of perils that are not covered under standard home insurance coverage. Known as exceptions, these no insurance duties consist of:

  • Home Sharing. Taking part in home sharing or renting out your home through online systems like Airbnb is a no-no for most standard home insurance coverage. Undoubtedly, part of this sharing economy is on hold due to the COVID-19 pandemic. However, you will need home sharing insurance if you want to avoid having your plan terminated or a claim denied if something bad happens to your home or to yours when you rent it out to someone else.
  • The bad guy’s job. Any unlawful errands that occur in your home is a place for your home insurance coverage. Moreover, if you intentionally damage your home and file an insurance claim for coverage, it is a fraud, and your claim will be denied.
  • Ethical Risk. It is your duty to maintain and protect your home and property. For example, making sure you have a functioning stop alarm system installed. You can’t ignore maintenance and precautions for your home and anticipate payments from insurance providers. Reducing the danger as best as possible is up to you.
  • Business Use. You cannot run a home business and expect domestic home insurance coverage to cover you in the event of an accident or problem arising from the business. Homeowners looking to introduce a company to your home need industrial or small company insurance coverage for that.

There are also points you can do that can cancel your plans. Avoid producing these mistakes to prevent your home insurance from being terminated.

COVID-19 and Home Insurance

A pandemic like COVID-19 is unlikely to cause any damage to your home or property. Future increases or pandemics are not covered under home insurance coverage.

However, it is wise to review things about your plan and review your risk coverage. For example, as spring begins to bloom and the odds of a swamp increase, if you don’t have inland flooding or drainage reserve coverage, it could mean trouble. The average cost to repair a flooded cellar can be as high as $43,000. To reduce that risk, contact your insurance provider or broker and get flood or splash damage triggered by the flood water protection included in your plan.

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