Home Office Am I Insured?

Home Office Am I Insured?

Working remotely and maintaining a healthy work-life balance are just a few advantages of having an office at home.

Although there isn’t a specific “work-from-home insurance,” homeowners insurance does offer protection for most items related to your job and your business.

However, before you can reap these rewards, you must protect your workspace in case of an unexpected incident.

In this blog post, we want to explore the questions you might be asking; about having a home-based business.

Is your current home insurance policy sufficient to cover your valuables and investment in establishing a home office?

Or you might be wondering; I have a home office, am I insured?

Let’s dive into what coverages may be enclosed under homeowners insurance that pertains to your home office environment.

Does Homeowners Insurance Cover Work From Home?

If you’re an entrepreneur running a business from the comfort of your home, owning your equipment for that business can be incredibly advantageous.

However, your homeowner’s insurance policy’s property coverage component is there to help should your equipment be stolen or damaged by a covered peril. While homeowners insurance does cover certain belongings, it does come with coverage limits.

To ensure you’re fully covered, check that the maximum amount your insurer will reimburse you exceeds your need. A $2,500 sub-limit for business equipment set in a standard homeowners insurance policy may not provide adequate protection.

Consider reviewing or expanding your coverage today to safeguard your valuable items.

The types of damage covered by insurance for your personal business property are listed below.


    • Fire

    • Certain types of water damage

    • Smoke damage

    • Burglary

Do Full-Time Employees Have Coverage Under Homeowners Insurance?

It’s important to understand that homeowners insurance only covers your personal property, not any equipment your employer owns.

Depending on your company policy and the circumstances of the damage, your employer may pay for the repair or replacement of damaged work equipment. However, you may also be held responsible for any damage and find yourself needing to use your homeowner’s personal insurance liability coverage to cover legal expenses.

It is important to clearly understand potential exclusions regarding damages incurred from business pursuits so that you are prepared if the need arises.

If I Work From Home, Can I Deduct My Home Insurance?

Generally, homeowners insurance is not tax deductible.

However, you may be able to write off a percentage of your premiums depending on how much of your home you use for business. You should always check with a tax professional to see if you can qualify for a deduction.

Is Home Business Insurance Necessary?

There are a few essential questions that all home-based business owners should ask themselves:


    • Is my home a meeting place for customers or clients?

    • Can I keep inventory or supplies at home or off-site?

    • In the event of damage to my home, would I lose income?

    • Is there anyone working in or outside my home?

    • Can I keep records of my clients or employees on my computer?

It would be a good idea to review your type of coverage and coverage limits if you answered “yes” to any of these questions. For a home-based business, home liability insurance might not be sufficient.

Does Working From Home Require Additional Insurance?

As a self-employed or at-home business owner, you typically have three options for home business insurance. Your equipment, your job, and the size of your company will determine the kind of coverage you require.

1. Business Property Endorsement

This option is best for independent contractors, consultants, and self-employed full-time freelancers.

2. In-home Business Insurance

It is the type of insurance ideal for home businesses with two to three employees and less than $250,000 in annual revenue.

3. Business Owner’s Policy

Typically, these plans are designed for businesses with at least three employees and annual revenues over $250,000.

Get the Coverage You Need to Protect Your Home Based Business

As you can see, there are a few things to consider when it comes to having insurance for your home office.

It depends on your business type and what kind of coverage you need.

Are you still unsure if you need business insurance for your home office?

Or, you’re still thinking, I have a home office am I insured?

If you have any questions regarding your insurance policy, please do not hesitate to contact us. One of our expert agents would be more than happy to discuss your unique situation and help you find the best possible coverage for your needs. Contact us today to get started!


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