We have seen a huge impact to the insurance market from COVID-19 over the last 12 months. The more obvious concerns with business interruption losses and reduced economic activity due to lockdowns have been noticeable to all, but there are some more subtle issues that are going to be with us for a while longer.
Whilst Travel & Car insurance claims have fallen significantly and the reasons are clear with such a heavy reduction to both foreign and domestic travel, insurers report heavy increases in home insurance claims with many more people working from home, children being home schooled and people having to make do with “holidays at home”.
Aviva reports a 188% “year on year” increase to claims involving hot tubs, whilst LV= notes a 225% increase in claims related to bonfires.
LV= goes further with their statistics to show a 21% increase in thefts of bicycles in the last 12 months, but a drop in home burglary claims of 34%.
We see the news is rife with reports of scams and other ever more sophisticated fraud with things like “number spoofing”, where the fraudsters are able to mimic calling from your bank or other trusted source, and calls, texts or emails purporting to be from home delivery companies requesting confirmation of personal information.
As the restrictions ease, we expect to see this reflected in the volume and type of claims being made.
We are seeing a number of enquiries where the needs of our clients are changing. For example, many of our clients have had to advise that they are working from home and, unless, noted on the home insurance policy, this could be a problem in the event of a claim. Cover for business equipment, including laptops, is not included on insurance automatically and nor is cover for accidental damage. For those lucky enough to be able to fully embrace the Working From Home ethos and have added an outbuilding to serve as the home office it is well worth checking that this is included on your home insurance policy. If a property has become unoccupied then your insurers need to be advised as the terms of your cover will change and you do not want to run the risk of there being no cover in place in the event of a claim.
We can all be sure that the impact of the Pandemic will continue to be felt for a long time and with so many changes it is worth ensuring that you change your insurance requirements with the times. We are here to help our customers so please feel free to contact us with any queries to ensure that you have peace of mind in the extraordinary times.
T: 01403 785775 E: info@omnidavis.co.uk.
