The real problem lies in clarity, with the vast majority of insurance holders stating that they do not comprehend how their decision to work from home affects their home insurance policy. In terms of figures, some 43 percent have not been informed of such a change by their insurance company, and a further 8 percent have received confusing information.
Research has shown that of a 2,000 people sample, the most vulnerable groups were revealed to be baby boomers and generation X on account of them missing out on effective communication.
The new development in insurance policy is a change from the Association of British Insurers’ previous statement, where they said that there is no compulsion for individuals to inform their companies of their work situation. However, the new development shows that this statement is no longer reliable and could carry repercussions.
ABI has now announced that their earlier statement is up for review on the 1stof September, before which home insurance policies will remain unaffected. That is not to say that it is not recommendable for people to fill in their insurance companies of their work decisions, particularly if the decision is based on personal choice and not compulsion.
ABI issued statements regarding at home business visitations, and whether these are covered by your current home insurance policy. They said that any items used in business activity will typically not be insured under your current cover, and the responsibility of insurance for this equipment falls on the employer rather than the employee.
Urban Jungle CEO Jimmy Williams has stated that older, more powerful insurance firms are likely to be rigid, and as a result, thousands of individuals could lose out on their current insurance policies. Eventually, these companies will start to see falling numbers as customers opt for more economical options.
Matters have reached European legal services thanks to the Financial Conduct Authority as they take insurance companies to court in an attempt to determine whether corona related insurance claims should be entertained.
Many insurance companies have said that the nature of their customers’ work ultimately determines whether or not they need to notify insurers of their work situation. As a general rule, clerical work does not require notification, whereas non-clerical work calls for an update in policy matters. This alignment towards the nature of an individual’s work ties into increasing insurance claims for glass and technology-related damage.
From tea spills to children causing havoc on gadgets, the type of insurance claims has definitely seen a turn. Of course, the ownership of your equipment is also an important matter. In the case that your remote work gadgets belong to your employer, then they are unlikely to fall under the bracket of your home insurance policy.
All in all, it is not surprising that insurance premiums are set to increase in the near future as corona induced anxieties continue on an upward trajectory. And it is not just that, but estimated flooding in the next few months further adds to the liability.