Does Your Homeowner's Insurance Cover Home-based Businesses?

Because of the advances in technology, we have seen a surge in home-based businesses, but what a lot of people do not realize is that the standard home insurance policy will not cover these risks in the majority of cases. Your best chance of receiving compensation for damage to your business would be if you had special endorsements in your policy. For example, if you have a policy that covers daycare providers when you file a claim for your business, it will cover it.

According to Independent Insurance Agents & Brokers of America, around 60 percent of businesses in the home do not have adequate home insurance to cover them. Some people mistakenly believe that homeowner's insurance will cover their losses, but in many cases, your insurance provider will refuse to provide coverage for undisclosed home businesses. In some cases, they have even canceled a homeowner's policy. At best, they will give you a small reimbursement for what you lost.

What can an aspiring entrepreneur do to protect their business? First, start with homeowner's insurance intended for home-based businesses. In most cases, you will have three types of insurance for this, and you should choose a policy based on the complexity of your business. The most affordable home-based business insurance is rider to homeowner's. This policy expands the coverage to protect your company, and it only costs an extra $100 per year but gives you $2,500 of coverage. Next, you have an in-home business policy that will cover a broader level of losses, and it runs between $250 to $500 a year. Normally, this will cover up to $10,000 in losses.

Finally, you have the business owner's policy, and this is a choice best left for the successful entrepreneur that needs $10,000 of coverage or more. This comprehensive policy is what you find at traditional brick-and-mortar establishments. Speaking with your home insurance agent can help you to find a policy that meets your business requirements.

Call Pachuta Insurance Today @ 706-769-2262
Source:
CapeCod.Com