COVID-19 has many of us thinking about how comprehensive our health insurance is, but this taking stock should also be applied to life insurance (increasingly written off by younger generations, but a critical safety net ) long-term care (could you afford a financially depleting one to two years in a medical assistance facility?), and property and casualty insurance. Given how differently people are living and working today relative to 2019, it’s time to reassess personal risk. These changed behaviors (e.g., less driving, more working/playing at home) come with a slew of insurance implications. Put in a new trampoline or pool? With this increased risk of injury or damage, you might want to review your homeowners insurance (less is definitely not more, just ask millions of Texans).
Then there are unforeseen extreme weather events in a handful of states that have resulted in a loss of power, water, and gas; a lack of food and heat; some houses catching fire while others have been flooded due to frozen pipes bursting. Those who were properly insured will come out a bit bruised, but still intact. Those who had cut corners on their coverage, or perhaps never bothered with the details of their policies, are now regretting their missteps as they endure significant financial burden to repair and rebuild.
On the business side, could your restaurant, retail store, or other public-facing organization leave you liable for the transmission of Covid-19? What about being shut down for not following code due to failure to keep up with the rapidly changing state guidelines? Traditionally, business continuation insurance has been vital coverage to have in order to protect profits should your operations shut down due to issues like property damage. Many have found that government-mandated closures were unfortunately not a covered event in traditional policies. That said, insurance companies do have products for extreme events (e.g., terrorism) and are already responding with new forms of coverage to account for pandemic risks.
If all of this is depressing , it’s still not too late to prepare for the future, whatever it may hold.