As the world shifts more to a remote working environment, people should know if their homeowners insurance will provide adequate coverage while they work from home. If you’re considering working from home, it’s important to understand the basics of homeowners insurance coverage and whether you need added coverage.
Does Homeowners Insurance Cover Work from Home?
Homeowners insurance covers the physical structure of your home and its contents, including furniture, electronics, and other personal property. It also covers other structures on your property, such as outdoor sheds and garages. If you’re working from home, your homeowners insurance can provide coverage for any equipment that you use for your home business. However, homeowners insurance limits coverage for business equipment to $ 2,500 so you may need extra protection.
It’s important to note, however, that most homeowners insurance policies do not cover business-related losses. This means that if you suffer a financial loss due to your work-from-home activities, your homeowners insurance will not cover it. For example, if you lose money due to a cyber attack or if you have to replace expensive equipment due to damage, your homeowners insurance will not cover these losses.
Additionally, most homeowners insurance policies will not cover any injuries that you or your employees may suffer while working from home. This is because homeowners insurance policies are designed to cover your personal losses.
Homeowners Insurance Coverage for Full-Time Work-from-Home Employees
Your homeowners insurance policy is designed to cover only your losses related to the physical structure and contents of your home and not others’ property. If you damage a piece of equipment provided by your employer, it will not be covered by your policy. If your employer refuses to pay for repair or replacement, you may have to pay from your own pocket. However, if they sue you for damage, you may be compensated for your legal fees by your personal liability coverage provided “damage from business pursuit” is included in your liability coverage.
What Additional Homeowners Insurance Coverage Is Needed If You Work from Home?
It may help to have additional insurance coverage to protect you from losses related to your work as your homeowners insurance policy offers limited coverage.
Depending on your business size and operations, your insurance provider may offer additional coverage such as:
- Business property endorsement
- In-home business insurance
Working from home can be a great way to increase your income and save on overhead costs. However, it’s important to understand if your homeowners insurance policy will cover the business-related losses. If you’re considering working from home, it’s important to contact your insurance provider to determine if additional coverage is available. With the right coverage in place, you can rest assured that you’re protected from any losses.
Cover Your Home While Working from Home with Gee Schussler Insurance
For more information on how you can protect yourself when working from home and other homeowners insurance coverages, contact our team at Gee-Schussler Insurance today.
