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Understanding Home Insurance for Work-from-Home

Oct 04, 2023

Home Insurance

Understanding Home Insurance for Work-from-Home

In an era where remote work has become the norm, many individuals navigate the complexities of working from home. While it offers convenience and flexibility, it also raises questions about the extent of coverage provided by standard home insurance policies. Surprisingly, home insurance offers very little coverage for working at home, leaving homeowners vulnerable to several risks.

What Homeowners Insurance Covers

Homeowners insurance is primarily designed to protect against fire, theft, vandalism, and natural disasters. It offers coverage for the physical structure of your home and personal belongings. However, regarding business-related activities, the protection offered is minimal.

  • Contents Coverage: Most homeowners insurance policies provide some coverage for personal property, which may include office equipment and supplies. However, this coverage is typically limited and may not be sufficient to replace expensive technology or specialized equipment used for work.
  • Liability Coverage On a Home Insurance Policy: Standard homeowners insurance includes liability coverage that can protect you if someone gets injured while on your property. However, this coverage is typically not designed to address risks associated with running a business from home.

How Work at Home Creates New Risks

Working from home introduces a new set of risks that may not be adequately covered by standard home insurance. These risks may include cyber threats, potential professional liability, and damage to valuable equipment due to accidents or power surges.

Does a Homeowners Insurance Policy Cover Computers and Technology?

While standard homeowners insurance policies cover personal computers, they may not extend coverage to computers used for business purposes. Additionally, specialized equipment and technology related to certain professions may not be adequately protected.

Which Work-from-home Employees Should Buy Added Coverage?

Individuals engaged in professions that require specialized equipment, handle sensitive client information, or provide professional services should consider adding extra coverage. This includes freelancers, consultants, and those in creative or tech-based industries.

How to Add Coverage for Working at Home?

One way to enhance coverage for work-related activities is by obtaining an endorsement or rider to your existing homeowner’s policy. Alternatively, you may need to explore separate business insurance options, such as a Business Owner’s Policy (BOP) or a specific professional liability policy.

What Is E&O Insurance?

Errors and Omissions (E&O) insurance, also called professional liability insurance, covers professionals who provide advice or services to clients. This type of insurance can be crucial for those working from home, as it safeguards against negligence claims or mistakes in the services provided.

Contact Fuller Insurance Agency for Tailored Remote Work Insurance

It is crucial for individuals working from home to understand the limitations of their existing homeowner’s insurance policy. While it offers essential protection for personal property and liability, it falls short of covering the unique risks associated with working remotely. To ensure comprehensive coverage for work-related activities, consider exploring options like endorsements, riders, or specialized business insurance policies. Contact us at Fuller Insurance Agency today for personalized advice and tailored insurance solutions. 

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