How Working From Home Affects Home Insurance Coverage

As more people embrace remote work, the lines between personal and professional life blur. If you work from home, it’s essential to understand how it impacts your home insurance coverage.

Homeowners Insurance and Working From Home

While there’s no specific work-from-home insurance, your homeowners insurance may offer some coverage for business-related equipment. The following are some considerations: 

• Personal property coverage—Homeowners insurance typically covers personal property, including business equipment. However, this coverage is limited to your policy’s maximum amount.
• Employer-owned equipment—If you work from home for an employer, they likely own your work laptop and equipment. In such cases, your employer should cover any damage or replacement costs. Check your company policy to confirm.
• At-home business—Additional coverage may be necessary if you run an at-home business. Consider adding business property coverage or purchasing a standalone in-home business insurance policy to help ensure adequate protection for your business assets.

Types of Work-from-Home Employees and Insurance They May Need

The following are different types of work-from-home employees and the insurance coverage they may require:

• Remote employees may use a mix of employer-owned and personal equipment for work. While employer-owned equipment may be repaired or replaced by the company if damaged, personal property won’t be. Home or renters insurance may be needed to insure any personal equipment used for work.
• Independent contractors work on a contract basis and are not employees of any specific company. Independent contractors may need a variety of insurance types, such as business liability and property insurance coverages, to adequately protect themselves.
• Sole proprietors running home-based businesses operate their own businesses from home. Sole proprietors should consider business insurance, as homeowners insurance is generally insufficient to cover business-related losses; business-related claims may even be excluded from a home insurance policy. Business insurance may cover business property, liability and other risks related to home-based businesses.

Home Insurance in Lake Worth, FL

While homeowners insurance offers some coverage for work-related equipment, it’s essential to evaluate your specific situation. If you run an at-home business or work as an independent contractor, consider additional coverage options to safeguard your assets. Contact The Marvelous Associates to review your policy and consult an insurance professional to ensure you’re adequately protected. We can tailor a policy to your specific needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.