In the last 18 months, the number of people working from home has greatly increased. However, the topic of how that works with your home insurance hasn’t really been discussed. So, lets address a few points today.
Depending on the type of business you’re conducting, liability is not going to extend unless it can be added by endorsement. Some home insurance policies will allow for childcare, with an endorsement. Other types of liability will be excluded without a commerical license and policy. For example, if you’ve set up a show room and have customers coming to your property. In this instance, liabilty will not extend.
If your job requires you to make or store product, there is not coverage for it while it’s in your home. Many people have started at home t-shirt, jewelry, and wood working businesses in the last couple of years. However, a regular home insurance policy is not going to provide coverage for inventory due to a loss.
A standard home insurance policy has a cap on computers and related items. So if you have equipment from your office, there’s a good chance the value is higher than what would be covered. Be sure to discuss with your employer if they have protection on the items you’re using at home.
Many employers were abruptly put into a position to provide at home working conditions to stay in business last year. As determinations are made to continue the new set up, it’s a good idea to go over some of these topics. Being prepared and educated ahead of time makes an accidental loss easier to address.