Homeowners Insurance and COVID-19: Relief Options and Considerations for Our New Reality

The COVID-19 pandemic’s emergency phase has ended, but its ripple effects on housing and insurance persist. Households are contending with higher insurance costs and tighter availability in some regions, while remote and hybrid work remain structurally elevated (roughly 28–30% of paid U.S. workdays are still done from home), which can change coverage needs and risk profiles according to WFH Research.

Mortgage relief has also transitioned from the broad, automatic COVID-era forbearance and foreclosure moratoria to permanent, case-by-case tools. If you’re struggling, today’s options typically include short-term forbearance, payment deferrals, streamlined modifications, FHA Partial Claims and Payment Supplement, and (for VA borrowers) the new VA Servicing Purchase program; many states are also finishing out remaining Homeowner Assistance Fund dollars. Start by contacting your servicer and reviewing official resources from the CFPB, HUD/FHA, and the VA, and check Treasury’s Homeowner Assistance Fund to see if support is still available in your state.

But meeting mortgage payments aren’t homeowners’ only concern. If you own your home, you may also be worried about rising costs and eligibility for homeowners insurance as insurers respond to elevated catastrophe losses, higher rebuilding costs, and reinsurance prices. The Insurance Information Institute (III) tracks these trends in the latest national statistics.

Broad, COVID-specific premium grace periods and moratoria have sunset. Today, help typically comes through standard hardship arrangements from your carrier (such as short extensions or installment plans), consumer assistance from your state department of insurance, access to last-resort coverage like FAIR Plans when private coverage isn’t available, and mitigation incentives that can lower premiums after you reduce risk. For practical next steps, see the CFPB’s guidance on what to do if you can’t get homeowners insurance here, the III’s explainer on FAIR Plans, and state-level policy responses summarized by The Pew Charitable Trusts.

Furthermore, it’s a good time to shop broadly if you’re unhappy with your current policy. Not every insurer is writing new business in every area, and pricing and discounts vary widely. Compare quotes across multiple carriers and channels, ask about mitigation credits and deductible options, and, if you can’t find a private policy, ask your agent or state regulator about FAIR Plan eligibility and other market-access resources (CFPB) and (III).

Here, you’ll get an updated view of how the post–COVID-19 environment affects homeowners insurance in 2025, including coverage considerations for remote work and home-based businesses, what insurers and states are doing now (hardship help, FAIR Plans, and mitigation programs), and practical ways to save or stay covered—plus where to turn if you’re denied or nonrenewed.

In This Article

• Homeowners Insurance After COVID‑19: What Changed and What Still Matters
• Home Insurance Considerations for Our New Reality
• Insurer Assistance, FAIR Plans, and Mitigation Programs

Homeowners Insurance and COVID-19: Changing Your Mindset During the Pandemic

The pandemic sparked lasting lifestyle changes that may impact your homeowners insurance. With remote/hybrid work still common, it’s harder to draw a clean line between home and work. That can affect what’s covered, how much coverage you need, and which discounts you can earn—for example, if you invest in risk-reduction upgrades. WFH Research continues to show a large, steady share of workdays done from home.

When home becomes your primary workplace, revisit your policy to look for potential gaps in coverage. Standard homeowners policies often have low sublimits for business property (commonly around $2,500 on‑premises and about $500 off‑premises) and typically exclude business liability. Depending on your situation, you may need to raise business property limits via endorsement, add an in‑home business policy, or move to a Businessowners Policy for broader property, liability, and business income protection—see the Insurance Information Institute and the NAIC for details. If you’re a W‑2 employee using employer-owned equipment, confirm that your employer insures that gear.

Similarly, adult children who move back home are usually covered as residents of your household for their personal property, but it’s still wise to check policy limits and inventories—especially for high‑value items that may need scheduled coverage.

If you’re renting out a room or accessory space to generate income, remember that your homeowners policy won’t cover a renter’s belongings. Ask tenants to carry their own renters insurance, and talk with your agent about whether your hosting or rental activity requires an endorsement or different policy form.

It’s especially important to be clear about who and what is covered when you’re cohabiting. The contents portion of your policy covers the belongings of the named insured(s) and resident relatives, not temporary guests or tenants. Asking guests to purchase renters insurance is the safest approach for their property and liability needs.

Post‑pandemic, the biggest pressures on homeowners insurance have come from elevated catastrophe losses and higher repair costs—not simply from people spending more time at home. Recent analyses point to persistently high insured weather losses and rising claim severities, particularly for non‑weather water and fire. See Swiss Re’s sigma on multi‑year catastrophe losses and LexisNexis Home Trends for peril-by-peril frequency and severity trends.

To manage risk at home, consider practical mitigation steps like installing smart leak detection and hardening your property against local hazards (wind, hail, wildfire). Some states fund inspections and grants that can reduce losses and potentially lower premiums—examples include Florida’s My Safe Florida Home and Alabama’s Strengthen Alabama Homes.

Finally, right-size your liability protection. If your household is busier or you host more often, discuss higher liability limits or a personal umbrella policy with your agent so your coverage aligns with your risk tolerance and budget.

What the COVID‑19 era means for new homebuyers now

Conditions for first‑time buyers remain challenging. Home prices surged during the pandemic and mortgage rates later spiked, pushing typical payments to near modern highs. Harvard’s Joint Center for Housing Studies reports that monthly payments for a typical purchase roughly doubled versus 2019, with affordability near multi‑decade lows, and a “rate lock‑in” effect limiting resale inventory (State of the Nation’s Housing). The National Association of Realtors reports first‑time buyers made up 32% of purchasers in 2023, below long‑run norms (NAR), while Freddie Mac’s PMMS shows rates well above 2020–2021 levels.

Mortgage lenders require homeowners insurance at closing, and in some areas you may also need flood insurance. If you encounter coverage denials or nonrenewals during your purchase, talk to multiple agents, ask about mitigation-related discounts, and consult your state department of insurance about last-resort options like FAIR Plans and market-assistance programs; see the CFPB’s guide to next steps here and the III’s primer on FAIR Plans. You must provide proof of insurance before your lender will close your loan.

Most home insurance policies cover risks like wind, hail, fire, and vandalism, but limits and deductibles vary. Aim for coverage sufficient to fully rebuild your home after a total loss, and understand any special deductibles (e.g., hurricane or wind/hail) that apply in your area.

Official data show the average U.S. homeowners insurance expenditure was about $1,411 in 2022, with indicators pointing to continued increases since then (III/NAIC) and the CPI’s household insurance index showing sustained year‑over‑year growth (BLS CPI). Weather risk has also remained elevated in recent years (NOAA). Treat older “one‑number” decade-change estimates cautiously until newer official averages are published (opens in a new tab).

Home Insurance Considerations for Our New Reality

There are practical steps you can take to control costs, avoid coverage gaps, and improve insurability. Below are actions tailored to today’s environment of higher premiums, tighter availability in some regions, and enduring remote work:

• Reconsider your provider. If your current provider can’t meet your needs, shop across multiple carriers and independent agents. Ask specifically about mitigation credits and deductible options, and if you’re denied or nonrenewed, consult your state department of insurance about FAIR Plan eligibility and other placement help (CFPB) and (III).
• Review your liability coverage. If your household has changed or you’re hosting more often, consider increasing liability limits and evaluating a personal umbrella policy. Make sure your deductibles and coverage terms match your risk tolerance and budget.
• Explore mitigation discounts and grants. Many states and insurers offer premium credits for risk-reduction upgrades (e.g., wind or wildfire mitigation), and some states provide grants or free inspections. Examples include Florida’s My Safe Florida Home, Louisiana’s Fortify Homes Program, and Alabama’s Strengthen Alabama Homes. Check your state DOI for programs and approved credits.
• Revise your budget. If higher premiums are straining your finances, reallocate spending toward essential housing costs and consider higher deductibles you can afford in a claim. If your insurance is escrowed, coordinate with your mortgage servicer early to avoid force‑placed coverage (CFPB).
• Take advantage of discounts. Many insurers still offer loss‑mitigation, loyalty, multi‑policy, and protective‑device discounts. Ask your agent to re‑rate your policy after any certified mitigation improvements.
• Get proactive if you can’t make payments. Contact your insurer before a missed payment. Many carriers can offer short extensions or installment options depending on state rules. If you face cancellation or nonrenewal, your state department of insurance can explain appeal rights and last‑resort options (CFPB).
• Consider a home business endorsement. For remote workers and home‑based businesses, In short: add the right protection for business property and liability. Homeowners policies often cap business property (around ~$2,500 on‑premises/~$500 off‑premises) and exclude business liability; an endorsement, in‑home business policy, or full Businessowners Policy may be appropriate. See the III, NAIC, and the SBA for coverage comparisons.

Insurance Companies Providing Financial Relief

Insurers’ COVID‑specific relief programs (blanket grace periods, late‑fee waivers, and moratoria on cancellations) were time‑limited and have ended. In 2025, assistance is generally provided case‑by‑case through standard hardship options, while states are focusing on access to coverage via FAIR Plans and on mitigation programs that can lower risk and premiums. If you’re struggling to find or afford coverage, review the CFPB’s step‑by‑step guide here and learn about FAIR Plans (for example, Colorado’s plan: details).

Here are some of the best homeowners insurance companies to contact about current billing flexibility and hardship assistance (note that pandemic‑era pages may be archived and programs vary by state):

The Bottom Line

Many households are still navigating higher housing costs in the wake of COVID‑19’s market shifts. On the insurance side, elevated catastrophe losses, rebuilding costs, and reinsurance prices have driven widespread premium increases and tighter availability in some areas.

If you’re struggling to pay or find homeowners insurance, contact your insurer early to discuss hardship options, shop widely, and consult your state department of insurance about FAIR Plan access and consumer assistance. If your policy is escrowed, coordinate promptly with your mortgage servicer to avoid force‑placed coverage (CFPB).

There are many considerations when revising your homeowners insurance. Start by right‑sizing coverage for today’s risks, pursuing mitigation that can earn discounts, and building a proactive shopping plan—steps that can help you stay protected while keeping costs as manageable as possible.