Does Your Home Insurance Cover Your Home Office?

Do you work from home?

If you do, you may need to review your policy with your agent at Magic City Insurance Group LLC, serving Birmingham, AL, and all of Alabama, to get the additional coverage you need. Here are three important facts about insuring your home office every at-home entrepreneur needs to know.

Your Homeowner’s Policy Doesn’t Cover Everything

Every homeowner’s policy offers coverage against:

• Fire
• Theft
• Storm damage
• Vandalism

…and other common perils of owning a home.

If you are using your own computer, server, and office equipment in your home office, your policy will cover them, too. (If you use your employer’s equipment, your employer’s policy will cover them.) However, most homeowners’ policies have a $2500 limit.

Additionally, some policies exclude "damage from business pursuit." If your employer or your clients sued you for their losses from a casualty event, your homeowner’s policy would not help.

Additional Insurance If You Work from Home

Three easy ways to get the additional insurance you need if you work from home.

One option is to get a business property endorsement on your existing homeowner’s policy. This will increase the dollar amount of personal property coverage for your home office. Typically, this will increase a $2500 limit to $5000.

Another option is to get a separate in-home business insurance policy. This policy increases the coverage of your business equipment, typically to $10,000, but it also covers data replacement and liability after cyberattacks and income replacement when some insured event causes your home office to become inoperable.

You may even want to get a business owner’s policy. This is your best option if you need more than $10,000 in personal property coverage or if you have employees.

Whether you live in Birmingham, AL, or anywhere else, Magic City Insurance Group LLC can help you find the coverage you need. Call us for a policy review today!