The Lingering Impact of COVID-19 on Insurance: What You Need to Know

The Shift to Remote Work and Its Implications

A recent survey conducted by the Insurance Research Council (IRC) reveals that two-thirds of respondents worked from home at least part of the time during the COVID-19 pandemic. This shift has led to a significant reduction in vehicle travel, as half of the respondents expect to continue working from home entirely or alternate between working and not working from home in the future. This trend is further supported by the fact that nearly half of the respondents also expect to do less in-person shopping in retail stores even after the pandemic retreats.

Home Improvements and Liability Risks

The pandemic has also spurred a wave of home improvement projects, with one-third of homeowners undertaking substantial renovations. These improvements can have significant insurance implications, particularly if they increase the replacement cost of the home or introduce additional liability risks, such as installing swimming pools. Additionally, the adoption of dogs (21 percent) and acquisition of firearms (13 percent) have further complicated liability risk assessments.

Economic Concerns and Insurance Spending

The economic impact of the pandemic has left many concerned about their financial future, with half of the respondents expressing such worries. Common responses included reducing spending on travel and entertainment. Interestingly, a small percentage of respondents also took steps to reduce insurance spending, such as shopping for less expensive insurance or reducing coverage. This survey suggests that the effects of COVID-19 on the property-casualty insurance industry may continue even after the virus is under control.

For those looking to navigate these changes, it's crucial to regularly review your insurance policies to ensure they adequately cover any new risks introduced by lifestyle changes. Consulting with a professional insurance advisor can also provide valuable insights and help tailor your coverage to your specific needs.