Running A Home-Based Business: Is Your Homeowner's Insurance Enough?
Home-based businesses are often the perfect solution for individuals who wish to be their own boss but simply are unable to, or uninterested in taking on the large overhead costs that are traditionally associated with owning your own business. Unfortunately, many home-based business owners make the mistake of simply assuming their standard homeowner's insurance policy is enough to cover both their home and their business. This is not always the case. Thankfully, taking just a few minutes to review your current policy along with your personal insurance needs can help to ensure you do not find yourself with inadequate coverage when you need it most.
Exploring Your Current Coverage Options
When determining whether or not you require additional insurance coverage, the first step will be to take a look at the coverage offered by your current homeowner's insurance policy. In many cases, you will find that these policies exclude coverage for business-related items, such as inventory and office equipment, while offering coverage exclusively for items that are used for personal use. Consequently, while a computer that is damaged by a flood in your home may be covered if it is your personal computer, this same computer will not be covered if it is used for business purposes.
What To Do If Your Homeowners Insurance Is Not Enough
If you find that your current homeowner's insurance policy is not enough to protect both your personal and business property, you may have several different options available to you. The first of these options is simply to increase the amount of coverage that is offered by your insurance policy. It is important to note that while this option will increase the maximum payout allowed by your policy, it will not erase any exclusions that are outlined in the policy.
When dealing with policy exclusions, you will need to explore the option of what is known as a rider or add-on to your homeowner's policy. Riders allow you to add coverage for things such as home business equipment or inventory that is stored inside your home. To learn more about the different types of add-on coverage you may be able to purchase, it is important to work closely with an experienced homeowner's insurance agent. Not only will this agent be able to help you secure the best possible rates on your insurance policy, but they will also be able to ensure that your policy meets all of your personal and professional needs.
For more information about homeowner's insurance, contact a local insurance agent.