Pandemic home contents insurance: what brokers must know – insurance business
For the past decade, Nathan Tjandrawinata, AVP, Personal Insurance at Cansure said he saw "a fair share" in coverage for occasional home office work. The key word there is “by the way”, formulations that convey the home office are only used occasionally and are therefore usually very little exposed – and in many cases that is no longer sufficient. The impact of COVID-19 on businesses across the country has changed the risk landscape.
"Since the pandemic, we've seen a surge in a full-blown home office to replicate what the person used to have at work," Tjandrawinata said. "This leads to increased pedestrian traffic – such as from couriers and parcel deliveries – and since most homeowners are linked to personal liability insurance, this is an additional hazard that would significantly increase the risk."
On the other hand, the effects of the pandemic had the opposite effect in other common household insurance claims, and Tjandrawinata found that some risk has decreased. For example, a reduction in break-ins and fewer major water damage claims because "damage control measures are taken almost immediately because someone is always at home," he said.
However, despite these pandemic-induced risk shifts, Tjandrawinata said, trends in real home business haven't really changed.
“People who previously ran their businesses from home continue to do so, and people whose careers have been negatively impacted by the pandemic are either waiting or finding a new job, specifically looking for opportunities that will allow them to get away Work from home. hence the increase in home workplaces, ”he explained.
The good news for brokers and their clients is that most insurance companies adapt quickly to changes. Tjandrawinata said the most effective support a broker can provide to their clients is to assess the risks in advance and let the underwriters assess the risks accordingly.
"We are here to develop solutions for your customers," said Tjandrawinata. “I know at Cansure we always find ways to put square pegs into round holes, so this is not new to us. We will ensure that we find tailor-made solutions for each individual exhibition. "