Is COVID-19 Having a Negative Impact on Homeowners Insurance?

A recent survey of 1,000 U.S. homeowners, which was conducted by Hippo Insurance and SimpliSafe looked at how the pandemic was impacting homeowners across the country. It found that COVID-19 has had a dramatic impact on everyone’s life as well as the fact that homeowners are both anxious and paying closer attention to their homes then ever before. 

We are anxious

The study found that a whopping 78 percent of Americans feel a deep lack of security over their current situation while 39 percent felt far more insecure about their financial situation than they were at the beginning of the year. All of this can most likely be attribute to the fact that many families are struggling to hang onto their job, keeping their kids on track in school while also dealing with the uncertainty about the pandemic. 

Because many of us are stuck at home for work and school, the study found that the safety and comfort of our homes is becoming extremely important. Over half (55 percent) of those surveyed said the importance of protecting the financial value of their home is more pressing now than when they first bought the house. It also found that 42 percent said they will spend more time at home compared to last year. 

In addition, we are fixing up our homes during the pandemic. According to the survey, 57% of homeowners prioritized home improvement during the first three months of the COVID-19 crisis. They are continuing to emphasis working on the homes and making them a place they want to stay.

Other Trends Identified

Hippo insurance examined their data and found some other interesting trends related to COVID:

Increase in homeowner claims: An uptick in homeowner insurance claims is probably due to the fact that more and more people are home most of the time. This can lead to increased wear and tear on appliances which can lead to leaks, breakdowns and water damage. 

Home repairs increasing: According to Hippo’s data, 1 in 3 households have needed home repairs during the pandemic. The bad news is that 1 in 4 American households say they can’t afford to repair or replace broken appliances right now. 

Severity of home insurance claims drops: Due to the fact that more people are home during the day, the severity of home insurance claims has dropped. A leaking water pipe is caught more quickly when people are home, reducing the damage that is done. 

We are definitely staying home: SimpliSafe examined their data as well and found that American’s are absolutely staying home over the pandemic or at least not turning on their security systems when they leave. Data from SimpliSafe found a 50% decrease in the number of people who put their systems in away mode from March to April.