Owning a home-based business can be a great way to pursue a passion and make a little extra income on the side. But did you know that your homeowner’s insurance policy may not cover you while you do so? Here are three facts you need to know.
Fact #1: Homeowner’s Insurance Specifically Excludes Business
One fact to consider before you start that home-based business is that many homeowner’s insurance policies specifically exclude commercial endeavors. This means that if you ever have a claim—such as a fire, weather event, or theft—you could be responsible for replacing your inventory and other business items out-of-pocket.
Fact #2: You Could Be Putting Yourself at Risk for Claim Denial
Some property insurance carriers are even so picky about business exclusions that they will deny entire claims over the fact that a commercial endeavor was taking place inside the home. Imagine a situation where your house burns down, everything you own is damaged, and your insurance company denies the entire claim because you didn’t have a separate commercial insurance policy. Would you be able to replace everything you own without undertaking a huge financial hit? Unfortunately, this is the reality for some home-based business owners who do not seek out separate coverage.
Fact #3: Even Small Home-Based Businesses Need Commercial Insurance
Again, many carriers these days are really picky about home-based businesses. Often, they do no care if you only sell a few items a month or go to a trade show once a year. This means that even small endeavors need to have a special commercial insurance coverage. Most policies are surprisingly affordable and include basic liability and property damage protection.
Make sure your home-based business is completely covered. Contact us at Runnels Insurance today for a free quote or comprehensive policy review.
