There’s No Business Like Home Business…If You Are Covered
There’s No Business Like Home Business…If You Are Covered
There are many benefits to operating a home-based business. The first, of course, is the instant commute. Many who have a home-based business conduct much of their morning office duties from their jammies. There is also the ability to better set your own schedule and be able to react to family duties. Many who operate home-based businesses are their own bosses, which has its perks. Perhaps the biggest reason home-based businesses are so popular, however, is they can be operated with very low overhead.
There is no rent for office space, for example, and utilities are included. In fact, operating a business from a home can have tax advantages that make it even more appealing. If you think, however, that your home-based business will be covered under your homeowners’ insurance policy, you are taking a big risk. The problem is magnified by the fact that you may not know it is a problem until it is too late.
Let’s take a look at the premise for your homeowner’s insurance. It is designed to cover your home from losses due to liability claims and certain calamities. The keyword here is “home”. Once you begin to use a house for more than personal living space (like renting out space or conducting business activities) its use changes. Those activities would not be covered under your homeowners’ insurance policy. From an insurance company perspective, your home now becomes a place where commercial activity is taking place.
This is particularly risky if you have inventory, office equipment or have clients visit your home to conduct business. These items would likely not be covered under your basic homeowners’ insurance policy and you will have increased exposure to liability claims.
It can be relatively simple and inexpensive to protect your home-based business, however. Contact your independent agent and make them aware you have a home-based business and what is involved in the business. They can provide an addendum or rider to your policy that will ensure coverage for your business activities conducted at home.
Yes, there are a variety of reasons operating a home-based business makes sense, as long as you have it properly covered in the event of a loss. Contact us and we can help explain your options and prevent you from experiencing an unexpected and uncovered loss.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Blogs
Understanding Your Home Insurance Rates: 5 Key Factors
Location, value, age, and more: discover the five factors that directly impact your home insurance rates.
A Trip Down Memory Lane with ‘Happy Days’
From The Fonz to “jumping the shark,” revisit the classic TV show that defined a generation.
Economic Indicators: What Fast-Growing Industries Tell Us
A look at the fastest-growing industries reveals what’s driving today’s economy and our priorities as a society.
Whole Life Insurance: Is it a Worthwhile Investment?
Confused about whole life insurance as an investment? We break down the unique benefits beyond a simple payout.
More Than Just a Car: The Joys and Benefits of Owning a Classic Vehicle
Thinking of buying a classic car? Discover why it can be a great investment and a fulfilling hobby.
Flood Insurance 101: Separating Fact from Fiction
Don’t get caught unprepared. This guide answers your top questions about flood insurance.
Decoding the Past: The Origins Behind Common and Curious Sayings
Unlock the hidden stories behind everyday phrases and discover the surprising origins of familiar sayings.
Essential Foundations: Five Things Your Small Business Needs Today
Setting up for success? Here are five non-negotiable elements for your modern small business.
Confronting Your Fears: Practical Steps Towards a Fearless Life
Tired of being held back by fear? Discover actionable techniques to confront and conquer your anxieties.
Lending Your Keys: The Hidden Risks of Borrowing Your Car
Borrowing your car? Understand the hidden insurance implications before you say yes.