Does My Homeowner’s Policy Cover My In-Home Business?
Gary Remland, Owner of Remland Insurance Services
California home insurance policies aren’t meant to insure businesses that are run out of a home. Basic premiums paid for homeowners coverage is based on having to handle the chances of loss that are related to the ownership and use of a residence and related structures only. This means that no liability coverage is available for business activities such as customers who slip and fall on your premises,damage to business property, injury caused by things you make, or damage due to services that you promote or provide.
Generally, a California homeowner’s insurance policy does not provide workers compensation coverage for any employee working on a home premise. Medical expenses and liability coverage maybe available for workers who are ineligible for workers compensation, such as maids, butlers, or nannies, but such coverage only applies if an injury occurs while performing residential tasks not business related.
For Example: You store $4,000 worth of equipment and business supplies that you use in your job in your garage and the garage burns down. The fire loss to the garage becomes ineligible because of its partial business use therefore your homeowner’s policy will not cover the goods lost in the fire or possibly pay to re-build the lost structure due to improper use.
Your basic homeowner’s policy may protect certain property that is itemized on the policy itself; however the coverage may be limited to as little as a couple hundred dollars. Some items qualifying for limited coverage include business personal property kept in or around your home, business personal property kept at a location other than in or around your home or landlord’s furnishings. One way to improve your coverage is to add policy options that do the following:
- increase the coverage limits for business personal property
- cover garages and other buildings that are rented to others
- protect electronic business equipment which is usually used in a vehicle while such equipment is located outside of a vehicle
- provide theft coverage for landlord’s property
- acquire limited business personal property and liability coverage for a in-home daycare
- cover a condo unit owners’ liability for damage caused by renters
- provide premises liability coverage
If you are currently running a business out of your home, Remland Insurance is here to help answer any questions or help you obtain the proper coverage needed to run a successful and properly insured business. Small businesses are typically not prepared for legal battles or implications properly, and purchasing the right business coverage can give you a peace of mind and the proper protection. Give Remland Insurance a call today with any questions by dialing 714) 532-3341.
Source – Rough Notes