The COVID-19 pandemic compelled numerous employees to vacate traditional office spaces and transition to remote work. As the nation embarks on a path to recovery, businesses and employees alike contemplate the advantages and disadvantages of returning to physical workplaces. Some companies opt to extend the option for more employees to continue remote work, whether on a part-time or full-time basis, leveraging advancements in technology that facilitate remote business operations.
The trend of working from home may gain momentum due to these technological advancements. However, the transition to a home-based work environment prompts homeowners to consider potential impacts on their existing homeowners insurance policies.
Does working from home influence your home insurance? Yes and no. Typically, a homeowners insurance policy does not inherently cover a home-based business, part-time or full-time employment, or business conducted as an independent contractor or consultant, as detailed by The Balance. Consequently, certain policies might contain exclusions concerning injuries or incidents that occur on your property during any business-related activities.
Although a permanent or semi-permanent transition to working from home might not directly alter your current homeowners insurance, it might be prudent to update your existing policy or consider obtaining additional coverage specifically tailored to home-based work or business operations.
When is the appropriate time to update my homeowners insurance policy?
Determining the right moment to update your homeowners insurance depends on your current and future employment circumstances. If you anticipate a return to in-office work in the near future and primarily use personal equipment such as a laptop or minimal “low-value” items while working from home, your homeowners insurance policy might cover these items under a sub-limit. However, if your work-from-home arrangement becomes a more permanent fixture, it’s advisable to start exploring updated homeowners insurance options and additional business coverage.
It’s always prudent to conduct an annual review of your homeowners insurance to identify any necessary updates. When the time comes to revise your homeowners insurance, exploring various insurance companies and their offerings via platforms like Credible can be beneficial. Comparing quotes aids in finding a suitable rate aligned with your specific needs and budget. Leveraging partners of platforms such as Credible can streamline and expedite your search process, minimizing the time investment.
What insurance do I need if I’m working from home?
Depending on your specific circumstances, The Washington Post suggests that besides your homeowners insurance policy, you might require additional insurance. If you are a full-time employee of a company, the employer’s business liability insurance should extend coverage to you, addressing injuries or incidents that may occur to you or company property while working from home.
As a business owner, it may be necessary to acquire a separate business insurance policy in addition to your homeowners insurance. Commercial liability insurance is a comprehensive policy often chosen by business owners to cover bodily injury, property damage, and personal injury resulting from advertising. If your home-based business employs individuals, securing workers’ compensation insurance might be necessary. Additionally, a commercial property policy can protect high-value business equipment exceeding the sub-limit covered by your homeowners insurance.
In conclusion, with the growing prevalence of remote work, it’s essential to comprehend how you and your equipment are safeguarded under your existing homeowners insurance policy. Engage in discussions with your current insurance provider and employer to identify potential gaps in your home and business insurance coverage, which could leave you exposed to risk. This is particularly crucial if you conduct any business activities outside of your home, ensuring that your policy covers injuries or incidents occurring off your property.
Ultimately, it’s imperative to ensure that your homeowners insurance offers adequate coverage within your budget. Comparing multiple insurance quotes has the potential to save hundreds of dollars annually. Obtaining a free insurance quote within minutes through Credible’s partners is a hassle-free process that can assist in this endeavor.