The spread of COVID-19 and the
measures we're taking against
it are causing daily
disruptions to many people's
lives. There's so much change
and uncertainty to deal with,
it's easy to get confused and
overwhelmed. And home insurance
may not be the first thing on
people's mind. But many home
insurance customers
understandably have questions.
So we've put together this
video and information on home
insurance and how it may affect
you as a homeowner, landlord,
tenant or someone who needs to
submit a claim in the time of
COVID-19.
The biggest change for most
people over the past few weeks
is that we're spending a lot
more time at home. The good
news is that the overwhelming
majority of us don't have
anything to worry about when it
comes to home insurance, during
this time. As your policy will
protect your property as it
always has. In fact, being
stuck at home may be a benefit
from an insurance perspective
since you're there to respond
quickly to problems before they
cause any damage.
What if my home is vacant or
unoccupied because of COVID-19?
If your home is vacant, it's
important to inform your home
insurance provider as soon as
you can. If it's unoccupied,
you don't necessarily need to
inform your insurer. And
although occupancy and vacancy
sounds similar, it's important
to know the differences between
these two terms because they
have a different effect on your
policy. Vacant homes are those
that the occupants have moved
out of with no intention of
returning. Newly built or
purchased homes that no one has
moved into yet would also be
considered vacant. Even
furnished homes can still be
vacant. It's all about the
intention to return or not, and
you must inform your insurance
provider if your home becomes
vacant. In the current
situation with COVID-19, vacant
homes are more likely a concern
for landlords but we'll get
into this a bit later.
Unoccupied homes are different
from vacant homes.
An unoccupied home is one that
no one is living in it
presently, but the occupants
plan to return.
And the measures against
COVID-19 may cause some homes to
be unoccupied that otherwise
would not be. So if you find
yourself unable to return home
due to travel restrictions,
your home may be unoccupied for
longer than you'd planned.
And home insurers will require
a few things from homeowners
during times when they leave
their home unoccupied.
For instance, some insurers
require that someone checks on
the home daily, especially in
colder weather. And given
current travel restrictions and
physical distancing measures,
that may not be easy.
So if your home is unexpectedly
unoccupied, you should at least
find someone to check on it as
frequently as possible.
And talk to your home insurance
provider to make sure they're
OK with the measures you're
taking. Regardless, if you are
delayed in returning to your
home due to COVID-19 measures,
give your a home insurance
provider a heads up.
And if you're a Square One
customer and you're unable to
return to home as planned,
let us know. We'll work with you
to make sure your home stays
covered until you can return
safely. Can I claim additional
living expenses because of
COVID-19? Unfortunately, no.
The additional living expenses
coverage is meant to help cover
extra expenses when a home is
uninhabitable due to physical
damage. So if for some reason
you're unable to live in your
home because of COVID-19, your
home insurance policy won't be
able to reimburse your living
expenses. ALE can cover you if
you're removed from your home
due to an evacuation order from
a civil authority. However, the
current COVID-19 measures like
physical distancing and travel
restrictions are different from
evacuation orders.
So in short, ALE coverage won't
respond. If you're finding it
hard to keep up with the
expenses during this crisis, I
highly recommend to make sure
you've applied for any
government assistance that you
may qualify for.
As tenants lose their income
and Airbnb guests cancel
bookings, landlords and
short-term rental operators are
definitely feeling the effects
of COVID-19, as well.
Will rental income insurance
cover losses from COVID-19?
Rental income coverage is meant
to cover lost rental income
when tenants can't occupy their
rental suite because it's
suffered physical damage,
caused by an insured loss.
Unfortunately, the presence of
viruses is not a physical
damage, which means there is no
insured event to trigger
coverage under home insurance
policies. Landlords can't claim
lost rental income caused by
common viruses like the
everyday cold or flu.
And although COVID-19 may be an
extreme situation, it's still a
virus so it's outside the scope
of rental income insurance.
This goes for both landlords
and short-term rental
operators. Rental income
coverage for landlords also
won't provide coverage if their
tenants were laid off and
cannot afford rent.
Instead, landlords in this kind
of situation will need to work
with their tenants to find a
solution. To help with these
scenarios, many provinces have
introduced programs to help
renters and landlords.
Short-term rental operators are
in a particularly challenging
position, as the tourism
industry has almost grounded to
a complete halt.
So one solution that many have
already turned to is to find
long term tenants for the
short-term rental suites.
What if my Airbnb property is
now unoccupied?
Airbnb guests have canceled
virtually all their
reservations for the near
future, which can be
financially troubling for
Airbnb operators. But they need
to take steps to make sure they
address their rental suites new
reality. If you're short-term
rental suite has no guests now
nor any scheduled in the
foreseeable future, it's
effectively vacant.
And vacant properties have
special considerations when it
comes to home insurance.
So if you're a short-term
rental operator, I highly
encourage you to speak with
your insurance provider about
your situation. And while your
provider won't necessarily need
Airbnb hosts to formally change
the occupancy on their policy
to vacant, rental suite owners
should still act like their
rentals are vacant and take
some extra risk management
steps which include: Shutting
off the home's water supply.
Burst pipes and the resulting
water damage are one of the
biggest risk to an unoccupied
home. Especially when the
weather is near freezing.
And even during warm weather, a
dishwasher or washing machine
hose can suddenly spring leaks
while no one is home. So to
help prevent this issue, you
should shut off the water
supply to your rental unit.
Otherwise, it may be necessary
to check on your home every day
to ensure everything's in order
. And second, make the home look
lived in. Unfortunately,
burglary doesn't stop just
because we're dealing with a
pandemic. And if your rental
home is a house or a similar
property with street access,
it's worth taking some steps to
hide its vacancy and protect it
from burglars such as: Setting
up timed indoor lights to come
on after it's dark.
Avoid letting flyers,
newspapers or other deliveries
pile up on the front steps.
And set up security cameras and
motion sensors around the
property.
Amid an unprecedented wave of
layoffs and reduced hours,
renters across Canada are
worried about how they're going
to pay their rent during this
crisis and what will happen if
they can't. What can I do if I
can't afford rent? If you're
stressed or anxious that you
can't afford rent because
you've been laid off,
fortunately, the government of
Canada and most of the
provincial governments have
announced plans to help renters
during this time. Renters
facing economic hardship should
first apply for federal
benefits like the Canada
Emergency Response Benefit.
To help further, each province
is also putting in specific
measures because of COVID-19,
and you can find out more
information about that from the
respective provincial web
sites. And as this crisis
continues, governments at all
levels are introducing new
measures. So make sure to stay
up to date on what your home
province is doing to help
renters, as new support may
become available.
Are there any tenant insurance
considerations during the
COVID-19 pandemic? Much like we
discussed earlier with
homeowners, tenants who have a
tenant or renter's insurance
policy should not have any
problems with their coverage
due to COVID-19.
If you continue to pay your
premiums, your tenant insurance
policy will continue to
function like normal. That
being said, if you can't return
home due to COVID-19 travel
restrictions and you're stuck
in a different country, your
home will be unoccupied as a
result. And the issues around
unoccupied homes are much the
same for tenants as they are
for homeowners. So in short,
take the usual steps your home
insurance provider requires
when your home is unoccupied
and talk to your insurance
provider about anything you're
not sure of. They'll let you
know what you need to do if you
can't return home as planned.
Lastly, some people have asked
if additional living expense
coverage can respond to
COVID-19 related issues
if they're a tenant.
And unfortunately, like the case
with homeowners, you can't
claim additional living
expenses because of any virus,
which includes COVID-19.
The claims process, at least
for Square One, remains
unchanged during the COVID-19
pandemic. You can still report
your claims 24/7 by calling
1.855.331
.6933 or by visiting the
support page at
squareoneinsurance.com. And
don't worry, we've included a
link in the description below
so you can access that easily.
What if my repairs are delayed
due to COVID-19?
Given the disruptions to every
industry, it's quite possible
that repairs to your damaged
property might be delayed, or
you may not wish to have
contractors in your home while
physical distancing measures
are in place. So if repairs to
your home are delayed because
of COVID-19, Square One will
work with you to find the best
way to bring your claim to a
conclusion. It's a time of
incredible uncertainty for
everyone, and if you need more
information about how COVID-19
will affect your home
insurance, we recommend
contacting your home insurance
provider for more information.
And if you're a Square One
customer, you can contact a
licensed insurance agent at
1.855.331.6933 or visit
squareoneinsurance.com. Thank
you and stay safe everyone.