Is Your Home Business Covered By A Homeowners Insurance Policy?
More and more people are working out of their homes these days. Some telecommute for employers. Others perform freelance, contract, or professional services for other companies. And of course, many of us have worked for the luxury of running our business out of our living room. These days, with fast internet connections, a home office may be all we need to succeed.
However, just because we get to skip a long commute does not mean we should treat our business as something that is casual. We need to treat our home based business like a business. And one thing that may need the attention of all sorts of home workers is proper insurance. If you work from a home office, it is time to study your home coverage.
Homeowners Insurance Policies
A typical policy actually contains a bundle of protection. Of course, it protects your building and structures. It also provides some liability coverage in case a visitor claims damage. It may also provide some relocation help in case you have to live someplace else while repairs are being made. And finally, your home insurance policy should protect your personal property. While the typical protection for your structure may be OK for your business, let us look at liability and personal property insurance.
Liability Insurance For Home Business
A normal policy will just protect you in case a visitor claims some sort of damage, but will not cover any harm your business does to a customer or client. Many professionals need professional liability insurance. If you actually manufacture things from your home, you may also need business liability insurance to cover yourself in case a customer makes a claim.
Property Insurance For Home Workers
Even if you work at home, you probably have some dedicated equipment. At the lease, you must have a PC with an internet connection, tools, or supplies. Is your current home contents insurance enough to cover these things? It really may not be. You really need to figure out how much it would cost to replace these essentials machines, supplies, or tools, and you should make sure they are covered. Otherwise, damage or theft could ruin your business because you have no way to replace the things you need for your business.
Current Value Vs. Replacement Value
You should also consider the way your things are covered. Are they covered at their current value or replacement value? If they are only covered at the current value, you will have to buy them back at garage sale prices. For example, I probably could not get more than $100 for my 2 year old laptop if I wanted to sell it. But if I wanted to replace it with a new one, it would probably cost well over $1,000. I would have to buy a new laptop, an extended warranty, plus some essential software I use every day.
Learn More About Home Based Business or Home Office Insurance
Look at your current policy and then decide if your current coverage is really enough to protect your business assets. If you need to increase your coverage, it may be time to compare some homeowners insurance quotes. It is pretty easy to do this with online quote forms. You may need to increase your current policy, purchase a new one, or add an actual business policy.