Does Working From Home Affect Your Homeowners Insurance?
Here in Georgia, more and more people (and maybe you) are working from home every day, especially if you’re self-employed. While the WFH lifestyle offers many perks, like flexible hours and the comfort of your house (hello fuzzy socks and bathrobe work uniform), it also brings new responsibilities.
One crucial aspect that many remote workers and freelancers like yourself might overlook is how WFH can affect your homeowners insurance. Understanding this can help you avoid unexpected gaps in coverage and ensure your home office is properly protected. You might also be wondering if there is such a thing as “working from home insurance.”
Now it’s time to dive into what you need to know to keep your work-from-home setup secure in the Peach State!
The Rise of Remote Work and Its Impact on Insurance Needs
Remote work has become a huge part of many people’s lives, especially after the COVID-19 pandemic. More and more people like you in Georgia are trading in their commutes for household offices.
Working from your house has many perks — like wearing pajamas all day and skipping the rush-hour traffic — but it also comes with new responsibilities and risks. One big question many remote workers might not think about is this: Does homeowners insurance cover working from home?
This article will break down what you need to know to ensure you’re properly covered, especially if you’re running a business with in-person customers out of your own house — in which case you might have additional liability to consider.
Evaluating Your Current Homeowners Insurance
Before diving into what changes might be necessary for working from home coverage, it’s important to understand what your current homeowners policy covers. Most standard policies protect your structure and personal belongings against events like fire, theft, and natural disasters. A recent rash of these types of events are why some insurers are canceling homeowners policies in Georgia. It’s important to find an insurer that will stick around to fully cover you and your home office.
What Remote Workers Need to Know About Standard Policies
Let’s say you’ve set up a cozy office in your spare bedroom, complete with a new computer, printer, and other equipment. If a fire or burglary were to occur, your homeowners policy might cover the loss of these items — but only up to a certain limit. Typically, standard policies have a cap on how much they will pay for business-related equipment, often around $2,500. If your equipment is worth more than this, you might be underinsured. So, a good first step here is to take an inventory of the property you own and what it’s worth to your operations when it comes to remote work insurance.
Enhancing Your Insurance for a Home Office
If you work from home, you need to know what homeowners insurance covers and if that includes your office setup. Review your policy and consider making some adjustments to ensure your office is adequately covered.
Tailoring Your Policy to Suit Remote Work Requirements
First, you should contact your agent to discuss your situation. They can help you assess whether your current plan provides enough protection for your home office equipment. If not, you might need to increase your personal property plan or add a home office endorsement. This endorsement is an add-on to your existing policy that can increase the coverage limit for business-related equipment.
Additional Coverages for Comprehensive Protection
Besides upgrading your personal property coverage, consider other endorsements that might benefit remote workers. For example, adding a “business property endorsement” can extend your policy for business equipment and supplies.
Also, think about liability coverage. If clients or colleagues visit you for work purposes and get injured, your homeowners plan might not cover the liability. Adding a home business endorsement or a separate business owner’s policy (BOP) can offer broader liability protection.
Special Considerations for Remote Employees and Freelancers
Whether you’re a remote employee for a company or a freelancer running your own business from your house, understanding the differences in working from home insurance needs is crucial. This will help you know how to avoid common home insurance mistakes. For example, your standard home insurance policy may not cover a fire caused by undisclosed home office equipment.
Employer’s Insurance vs. Your Own: Knowing the Difference
If you’re a remote employee, your employer’s policy might cover some aspects of your work equipment. However, this isn’t always the case. Employers typically insure equipment they provide, but anything you purchase yourself might not be covered without remote work insurance.
Additionally, your employer’s liability policy won’t cover incidents that happen at your house. It’s essential to clarify with your employer what their plan covers and what you need to handle on your own.
When to Seek Professional Liability and Business Policies
Freelancers and WFH-based business owners in Georgia might need more specialized coverage. Professional liability protection, also known as errors and omissions insurance, protects you against claims of negligence or mistakes in your professional services. If your business involves giving advice or providing specialized services, this coverage is crucial.
Another consideration is a separate business owners policy (BOP), which bundles general liability and property coverage at a lower premium than buying them separately. You can tailor this to cover the specific risks associated with your business.
Make Sure Your Home Is Covered No Matter Where You Work
Hopefully, this guide has answered the question of “Does homeowners insurance cover working from home?” for you! The new world of remote work has redefined the working from home policy, especially concerning homeowners coverage. It’s vital to evaluate your current plan to ensure it covers your office equipment and potential business liabilities.
By considering endorsements and additional coverages, such as a home office endorsement or a business owners policy, you can enhance your protection. Understanding the differences between employer-provided coverage and what you need to cover yourself is crucial. Whether you’re an employee or a freelancer, taking these steps will help secure your office and give you peace of mind as you work from home.
Get the homeowners insurance you need in Georgia today from us — the experts at Velox Insurance — by requesting a quote online, giving us a call at (855) 468-3569, or visiting your local Velox office today!
