Home insurance is a type of property insurance that helps cover expenses related to property damage and loss. It can offer financial and legal protection in case an unfortunate incident happens within an insured property.
The specific coverage can vary depending on your policy. In most cases, however, it does not cover home-based businesses. The good news is that you can include this as a rider. This way, you can have peace of mind.
Make the most of your home insurance. Read on and we’ll share some tips on how you can maximize your coverage for your at-home business.
How Can Insurance Riders Protect Your At-Home Business?
While conventional home insurance can protect your home, it might not offer the same coverage to your home-based business.
Whether a self-employed professional or a home-based business owner, you might need insurance riders for additional protection.
Below are some of the most common instances when home insurance riders may prove necessary:
- When your customers go to your house for face-to-face meetings, buy products, or avail of your services
- When you keep business inventory or supplies in your house
- When you have employees working in or out of your home
- When you can potentially lose business income because of damage to your home
- When you have a computer that keeps business/customer data
Start By Calling Your Insurer
If you’re building a home-based business, one of the first things to do is to call your current home insurance provider. This can be an opportunity to clarify what’s covered and what isn’t. This way, you can gauge the need to purchase additional coverage, depending on your business needs and financial capacity.
More so, calling your current home insurance provider might make you eligible for a discount. For instance, this can happen when you purchase at-home business insurance as a rider compared to a separate policy from the same company. You can qualify for insurance bundling and enjoy cheaper rates. It depends on what the insurer can offer.
Work with an agent to find the right rider coverage. Don’t hesitate to ask questions. Provide realistic projections about your business. For example, if you anticipate it to grow big, you might need more than a rider in the future.
Go Beyond The Price
Many home business owners will consider the price when buying an insurance rider. While such is a crucial factor, it should not be the sole basis of your decision. Cheaper isn’t always better. It’s critical that you read the terms and conditions to know the specific coverage. In most cases, you should not mind the additional expense if it means peace of mind.
Coverage You Might Need
As you evaluate the options for an insurance rider, one of the most important is to identify your needs. From here, it will be easier to narrow down the possibilities. For instance, it is useless to be paying coverage for a business vehicle if you don’t have one used for your business operations.
Among others, one that you might need is business property insurance. When you file a property damage claim for your home insurance, it might not cover those you use in your business if you don’t have the right rider. Meanwhile, when you add business property insurance, you can also insure business equipment, such as computers and printers.
More so, your at-home business insurance rider can also include liability coverage. This type of business insurance protects against financial losses from property damage, bodily injury, medical expenses, and defending lawsuits, among others.
Consider Other Ways To Increase Coverage
In this post, our focus is on at-home business insurance riders. The latter is an endorsement policy on top of your existing insurance. According to the Insurance Information Institute, you can enjoy coverage of up to $5,000 for as low as $20 per year.
In most cases, qualifying for a rider has a maximum requirement regarding business receipts, depending on the insurer. For instance, it can be limited to those with a maximum business receipt of $5,000.
For larger business receipts, however, a rider may not be enough. In this case, you might need to purchase a standalone business owner’s policy. It can combine property and liability coverage in one different from your home insurance.
With more and more people operating their businesses at home, insurance becomes more important. Your standard home insurance might not cover your business needs, so purchasing a rider can be a good idea.
Find a reputable insurer and go beyond price when exploring alternatives. Meanwhile, if the business is larger, a rider may be insufficient. Instead, you’ll need stand-alone business insurance.