Does my Homeowners Policy cover my In-home Business?

No. Your homeowners policy does not cover your in-home business. Although in today’s economy more and more people are working from home to save money on commuting costs, they may never consider whether their current homeowners insurance will protect both their business assets and liability involved with running a business from home. Making sure you have adequate protection for both your home and your business should begin with comparing quotes online for this specialize coverage.

To cover in-home business assets, you will need to evaluate the value of these items and make sure you have specific business insurance in addition to your homeowners policy. If you have computers, fax machine, packing materials and inventory – you will want to make sure the items are protected in the event of a disaster or theft. This may be your main source of income and losing it would be devastating to you and your family. You will want to make sure your insurance policy will replace items quickly so you will be back in business in no time.

Another consideration is liability business coverage. If you sell items from your home and your clients come into your home to purchase products, if they were injured while conducting business, your homeowners insurance plan probably would not cover the expenses. Make sure you have the right insurance to cover in-home business liability expenses. You do not want to be stuck with paying out of pocket if a customer trips while coming down the stairs or is bitten by a skittish pet. You can find great business insurance coverage by comparing rates online and purchasing the policy that fits your needs. If you conduct business from your home, it is essential to have the right type of protection, and your homeowners insurance plan will not cover business claims.

Learn the Insurance Laws for Your State

Learn the Insurance Laws for Your State.Should you believe that “insurance is insurance wherever I live,” think again.While the primary components usually apply to insurance in general, individual states pass their own laws and publish specific regulations. Assume nothing. Learn about your state’s insurance laws and retain an experienced, licensed agent to advise you.

Whether you need auto, home or business insurance, become familiar with your state regulations to ensure that you purchase the proper coverage. For example, most U.S. states require a specified minimum of liability coverage for auto insurance coverage. However, the minimum amount of coverage can vary from state-to-state. Also, the necessity for multiple liability protection, including property damage and uninsured motorist coverage, may also vary.

Once you learn the minimum coverage your state requires, spend some quiet time thinking about the assets you are protecting. For example, if your state requires minimum liability insurance of $25,000 per person, $50,000 per accident and $10,000 property damage, consider this coverage in light of your personal assets. Should you own a home worth $250,000, an $18,000 boat, personal property valued at $30,000, and bank savings, checking and investment accounts with total balances of $75,000, your state’s minimum coverage is not sufficient.

As the cost of vehicle repair and medical treatment skyrockets, most state minimum coverage limits are too low to protect you should a serious accident occur. Understand that people who are injured in auto accidents can successfully sue you for their damages in excess of your liability coverage limits.

You should use a similar approach to your home insurance. If possible, insure your home for “replacement value,” instead of a specific amount only. Should serious damage occur to your home, the cost to make quality repairs often exceeds the amount of the covered loss, typically the pro-rated amount of coverage minus depreciation. With replacement coverage, your insurer should cover the total cost to restore your home to its former condition.

Always shop for the best deal within the parameters of your state laws and the amount of assets you must protect. You can save time using an independent agent with an interactive website. Instead of trekking all over town talking to agents, a multi-carrier insurance agency can give you multiple quotes from major companies that have attractive rates in your state.