The rules have not changed but more and more people are working from home or have a business that they run from home. YOUR HOME INSURANCE does not cover your BUSINESS or your BUSINESS PROPERTY!!! Click here to get a free Commercial Property Insurance quote from us.
In recent weeks, I have had numerous claims that have been denied or greatly reduced because clients are thinking that “if it’s in the home, it’s protected by the home policy.” If you are a plumber, electrician, framer (think any of the building trades) your tools are considered your business property and there is little if any coverage that extends to these items if they are stolen out of the truck or the garage!
Another example to be aware of is the bookkeeper or accountant that is working from the house. The last client I worked with was the PIANO TEACHER. The office furniture, Fax machine, filing cabinet, copy machine, GRAND PIANO etc … are not insured under the homeowners insurance policy if it is part of your business.
In each of the above examples we have been addressing the property, but perhaps the biggest exposure that is not covered is the Liability protection that is NOT EXTENDED from your homeowners policy. The client that comes by the house to pick up the payroll report, and while at your house trips or is bitten by the family dog. The music students that come to your home and get hurt for whatever reason…
The solution is simple. Let your insurance agent know about your unique business exposure, and let your agent give you the different solutions to the problem. Today there are numerous insurance companies that have created a specifically designed policy for the “BUSINESS IN THE HOME”. It is the same type of coverage that you would enjoy if your business were in an office down the street, or a strip mall around the block. The premiums for these types of policies are usually very inexpensive and offer the protection that your home owners insurance does not.
Running a Business from the home is just one example of limitations that your homeowners policy has, but there are others that should be noted as well.
Gold and Silver bullion or coins have become very popular in recent months due to the economy. NOT COVERED with your homeowners insurance. Be very careful of thinking that adding a vault at home will take care of this risk. The vault is only good if you are not there when the bad guys come. If you are there, the bad guys will have you opening up the vault in seconds!!!
Jewelry, furs, Silverware, Guns, Rugs/Tapestries, Computers, Stamps, Securities, Cash, Trading Cards all have limited coverage under a homeowners insurance policy but can be addressed on an individual basis that fits with each clients needs.
In summary, your homeowners insurance is designed to protect against certain things. It is probably better to know what is NOT covered instead of what is covered. You can then make an educated decision as to what is important for you.
oday we are seeing more and more Mortgage Companies demanding that the new owner provide a Condominium Unit owner’s Policy. This policy must include “Building” coverage adequate to protect the mortgage amount. In essence, the new requirements, mandated by the Lender, does not recognize that a master policy exists. This is forcing the new owner to pay additional money for duplicate coverage.