The coronavirus pandemic forced many employees to leave their offices and work remotely. As our nation enters a period of recovery, businesses and workers alike are weighing the pros and cons of returning to the workplace, with some companies allowing more employees to continue working from home, part-time or full-time.
With new technologies making it possible to conduct more business activities remotely, it should come as no surprise that working from home is becoming more and more popular. While the “working” aspect of working from home may seem rather short-sighted, homeowners may wonder if this lifestyle change will have an impact on their homeowner insurance policies.
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Does working from home affect your home insurance?
Does working from home affect your home insurance? Yes and no. In general, homeowners insurance is not intended to cover a home business, work completed in part-time or full-time employment, or a business conducted as an independent contractor or consultant, according to The balance. Therefore, some policies also include exclusions related to injuries or incidents that occur on your property while you are conducting business.
While permanent or semi-permanent working from home may not directly affect your existing homeowners insurance policy, it may make sense to update your homeowners insurance policy or purchase a supplemental policy specifically related to working or doing business from your home.
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When should I update my home insurance?
Is now the right time for you to update your home insurance? That depends on your current and future work needs. If you plan on returning to work in the office soon, you may not need to research your home insurance updates. This also applies if you use a personal laptop and minimal “low value” equipment when working from home; it’s likely that your homeowners insurance policy will cover these items below your sub-limit. However, if you’re working from home indefinitely, it’s a good idea to think about your options for a remodeled home and additional business insurance.
Either way, it’s always a good idea to review your home insurance policy annually to determine what updates are needed. When the time is right to update your home insurance, you can: compare home insurance companies and buy their plans through credible. Comparing quotes is an important step to get the rate that fits your needs and budget, but it can take some time. With the partners of Credible, you can eliminate the time consuming part of your search.
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If I work from home, what insurance do I need?
Depending on your unique situation, you may need another insurance policy in addition to your household insurance, per The Washington Post. If you are a full-time employee of a company, the company’s business liability insurance should extend to you and cover any injuries or incidents that happen to you or company property when you work from home.
As an entrepreneur, however, you may also need business insurance in addition to your household insurance. Commercial liability insurance is a broad policy that most business owners choose to cover bodily injury, property damage, and personal injury through advertising. If your home business has employees, you may need employee insurance. A commercial property policy covers all high-end business equipment that exceeds your homeowners insurance sub-limit.
To make sure you don’t overpay for homeowner’s insurance, it’s free to check online through Credible’s partners.
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As working from home becomes more common, it is important that you understand how you and your equipment are covered by your current homeowners insurance policy. Talk to your current policyholder and employer to determine where your home and business insurance may put you at risk. This is especially important if you do business outside of your home, as you need to make sure your policy covers injuries or incidents that occur outside of your property.
Ultimately, you need to make sure that your home insurance policy provides you with the coverage you need at the rate that suits your budget. Comparing multiple insurance quotes can potentially save you hundreds of dollars a year. And, it’s so easy to get a free quote in minutes through Credible’s partners here.
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