Boston Property Management: Protect your Home Office
A lot of Americans are working from home these days as it is a far more convenient option. Their home offices are the extension of their job workspaces as they come with all the equipment one finds at an office workspace: computers, monitors, and scanners, printers along with file cabinets, sticky notes and desks.
The downside of working from home is that you need to have insurance to protect it. This post looks at the options available for home office protection.
Your homeowners insurance policy
Some homeowners tend to use their homeowners insurance policy to secure the contents of their office. The downside of using this policy is that it usually limits the replacement of your business equipment up to $2500. This is not a good option if you have a lot of expensive equipment in your office. Typically this means that it does not cover the price of a laptop and a printer.
So if you want to use your homeowners insurance policy, do remember that there are limits to the equipment you can cover. The only way you can increase the limit is by buying an endorsement so that your limit is increased. You also need to talk to your insurance agent and get advice on how you can get your coverage increased.
Boston Property Management: Home policy endorsement
The reason why it is important to buy an endorsement from your insurance provider is because it can land you in trouble. You need to inform your insurance company that you are running a business from home otherwise they will deny your claim for a business item on a home insurance policy.
Informing them will help you as you will get an increase of limits from $5000 and a maximum up to 10,000. This will also help to strengthen your relationship with your provider.
Homeowners’ liability endorsement
The other insurance you need for your home based business is liability. You can claim on property and equipment but you won’t be able to do anything about liability. If you have a lot of business deliveries or clients on your property, then you can be liable for any accident which occurs at home. You can get additional liability coverage only if your business has a rare occurrence of customers coming on site. In the event that you will have regular clients coming to your place, then your insurance provider will most likely deny coverage.
In-home business or business owners policy
So this is why you should get an in-home business policy as it provides more extensive protection for property and liability. This policy also typically includes coverage for lost documents and important records, lost income should your house become damaged, and liability for certain products and services. The catch is that you will get it only if you have fewer than three full-time employees, and its limits typically are $10,000.
We hope you liked our guide “Boston Property Management: Protect your Home Office”.