Thursday, July 21, 2016

My Homeowners Insurance Policy Will Cover My Home Based Business, Right?



Home based businesses seem to be popping up everywhere. With the internet at your fingertips you can run your business from virtually anywhere. Not to mention not having to drive to work if your business is home based. Thank goodness you have a homeowners insurance policy! Right? Well… Not necessarily. Just because your business is out of your home does not mean that your homeowners policy will cover you in case something were to happen.

Any type of loss that where to happen that had anything to do with your business typically is excluded from being covered under your homeowners policy. For instance, if your run a boutique out of your home and store all of your products (clothes, jewelry, etc…) there and there was a fire, without the right coverage, the loss of the clothing and jewelry will most likely not be covered. Nor would any of the racks you use to show these items, boxes to store them, office equipment for the business or anything that is used to run your boutique out of your home would not be covered under your homeowners policy. Even though it is out of your home, because it is a business, you must have the additional business coverage to cover the business in case of a loss.

There are endorsements that can be added to your homeowners policy or an umbrella but again, to be insure that your business is covered in case of a loss, you need to have business insurance. Business insurance can help to provide a financial buffer to get you back in business quickly after a loss with replacing your lost property and in some cases replacing lost income while a homeowners policy cannot.


Do you have coverage for your home based business? Are you wanting to know more about what coverage you may need to protect it? Call the office today, let’s set up an appointment and talk about what is best for the type of home business you have. Check out Farmers® article, “Do You have Coverage for your Home Based Business?” for more information as well. 

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