Operating a Business at Home Can Void Homeowners Insurance Coverage
A homeowner policy is a bundle of coverages designed for the average homeowner. Since most homeowners don’t operate a business out of their home, a homeowner policy offers very limited, if any, coverage for business property or activities. Sometimes running a business out of your home voids coverage completely.
For example, most homeowner policies provide converge for Other Structures (buildings not attached to the dwelling) such as a detached garage, shed, barn or any free-standing building. However, if you operate a business out of a detached building, the homeowner policy doesn’t provide coverage for that building. Your homeowner policy may be able to cover the building for an additional premium charge, but you may need a commercial policy.
In addition to property coverage, a home business may change or void your liability coverage. Say you offer tutoring out of your home and a student trips and breaks his arm while there. You could be facing a lawsuit, or at a minimum, the medical expenses associated with his injury could be your responsibility to pay out of pocket.
The main point to keep in mind is a homeowner policy is designed to cover activities typical to a private residence. If you operate a business out of, or at your home, you should call your insurance agent to make sure you have coverage for this added exposure.
To discuss your exposure with an experienced professional at Gordon Atlantic Insurance, please call our office at (800)-649-3252. If you have a quick question to pose, click below!