January 9th, 2015
Many workers find it more convenient to work from home or operate their own businesses from home. This has definite advantages because it can save homeowners the cost of daily commutes as well as the need to constantly update wardrobes with new business attire.
However, having a home office or running your business on your own property can be a delicate subject when it comes to insurance. There are many gray areas, and it can be difficult for business owners to know what's covered in the event of an accident or significant damage.
The other factor to consider is if damage does occur, what about the business income that owners could potentially lose during renovations? These decisions not only affect the condition of homes but also the financial security of businesses, which can be a doubly negative experience for homeowners who aren't equipped with the right insurance policies.
When it concerns using personal property for business purposes, some items can be covered under a traditional home insurance plan but usually up to a certain policy limit. In many cases, the limit is around $2,000, which isn't enough to cover a lot of important business items. Some owners will choose to insure laptops, desks, physical office spaces, Internet, phone systems and other office supplies.
But these limits are typically never enough.
Owners can create an addendum to their current homeowners insurance plans to increase their policy limits with certain insurers. In this case, a couple thousand more dollars may be available for coverage, which will allow for more items to be insured, but this is still not an ideal amount for many business owners.
To make sure a business is fully insured, owners can purchase standard home business insurance or business property insurance. It's best to keep in mind that every additional structure, room or item that is used for business purposes will have to be assessed by an insurance agent to see just what is applicable.
While a business may be located inside a home, believing that homeowners insurance will cover most expenses can be a potential financial burden after the fact. To remedy any insurance confusion, speak with an agent to see how a plan can be crafted to suit one's needs.
CoverHound is a great resource for homeowners in the market for home and auto insurance.