Working from home has become the new normal, thanks to the Covid19 pandemic. A large number of people are still working from home even though some workers have returned to their offices. It is important to know if you are fully covered as someone that works remotely, as a freelancer, or runs a business from home. In case you belong to the category of those working from home and you are wondering if home insurance covers you for business use.
According to Randon Morris, there are certain things you need to know about home insurance when working from home.
How Does Home Contents Insurance Work while working from home?
During the lockdown, many people made use of the flexibility of not needing to commute regularly. And even now that there is no lockdown many still choose to work from their home. When filling out any home insurance policy application some of the questions that are usually asked are: if you use your home as a place of work, receive clients to your home often and the time of the day your property is occupied.
If you work occasionally from home and won’t be receiving clients to your home, there won’t be a need to state this, says Randon Morris. However, if you run a home business where you work regularly at home with equipment and have clients visiting your home. You must mention it and make things clear with your insurer to avoid any problem later on when you need to make a claim.
Is Your Home Insurance Affected While Working From Home?
The answer to the question is yes because most standard home insurance policies don’t provide enough cover for working from home. Especially those that run their business from home. You must check with your insurance company to know all that is covered and excluded by your policy. The reason is that all insurance policies offer different covers and exclusions.
Whether you are working full time, part-time or sometimes from home it is advisable you notify your insurer. By doing so your insurer is aware of your situation, giving them a clear picture of your current circumstances. Your insurer will also be able to inform you if you are covered or not for working from home. Or to let you know if your cover is enough to protect you in case of an accident. There is every possibility for your home insurance to be invalid when you need to claim if you fail to inform your insurer that you are working from home.
Is The Damage of Office Equipment covered in Home Insurance?
Taking office equipment like a laptop home is not covered by your home insurance and doesn’t need to be. If you are working from home it will be separated from your home contents insurance. As it is expected that your employer will cover the equipment on the work insurance, particularly the corporate insurance policy. But you should check with your employer to be sure. So as an employee that is working from home you want to check if the office equipment you are using at home is covered by insurance and workplace policy.
Types of Home Insurance for Working from Home
Most standard home insurance policies will cover business equipment but not all of them. Before making any payment you want to look into the terms and conditions of the cover. Depending on the insurance company the level of cover on business equipment will vary. Therefore you want to do a thorough comparison that will benefit you in the long run.
Majorly the home insurance for working from home can be categorized into three main types which are:
1. Regular Business Visitors Insurance
This type of insurance is for those that have clients visiting the home on a regular basis. Your home contents will be considered of great risk if your work involves you having regular business visitors. Your insurer needs to be aware of this and it will cost you more on your home insurance.
2. Clerical Business Use
This refers to using office equipment at home and working at home in an office space kind of environment. Ensure your contents insurance covers necessary equipment if you regularly go for business travel.
3. Other Business use Insurance
This is when you use some part of your home for business such as making food that you will sell in your kitchen.
If you are working or running a business from home other options you may want to put into consideration include
Business insurance: You might need it to protect your business and not your home.
Public liability insurance: It is good for those that are self-employed as it can protect them in case someone makes claims against them.
Professional indemnity insurance: it will be needed in a situation whereby you are held responsible for negligence.
As you can see now, there is a limit to what your home insurance can cover while working from home. Whether you are working at home part-time, full time, or occasionally check well with your insurer before you make an assumption says, Randon Morris.