Reasons Why You Need A Separate Insurance Policy for Your Home Office

One of the perks of the computer age has been the ability to work from home. Typically people who set up a home office use a spare room that is dedicated to that purpose. It’s also become increasingly common for people to work from their home office exclusively, never setting up an office at another location. This leads to a need for additional insurance to cover your home office in addition to your normal homeowner policy.

Many people mistakenly believe that their home office is sufficiently covered under their existing homeowner policy. This isn’t true, as a home office is more than just the physical property that is covered under those policies. For example, the typical home office owner would need more than just the property replaced. Generally, a homeowner policy covers fire, flood and things of that nature. It doesn’t cover data loss, loss due to cyber-crime or lost revenue due to the business being interrupted. It also doesn’t cover business liability. Most homeowner policies are simply not designed for the type of coverage necessary for a home office. 
There is also the consideration that what constitutes a loss for a business may not be considered a loss under an existing homeowner policy. This is where small business insurance comes into play, even for someone who works from home.

There are several ways to insure your home office that will get you the coverage you need at a price you can afford. This makes purchasing additional insurance a sound financial decision.

Some companies, recognizing the number of people that have home offices, have started offering endorsements to the homeowner policy to cover a home office. These policies typically raise the amount of coverage for your office equipment and some offer coverage for data loss. There are also options for small business insurance and separate policies to cover your computers and other office equipment. Recently, some companies have begun offering something of a hybrid policy where you add an endorsement for your home office to your existing homeowner policy. These are frequently bundled with auto insurance as well for even more significant savings.

Because there are many options to be considered in insuring your home office, the best way to make an informed decision is to discuss those options with your insurance professional. He or she will be better able to assess your personal situation and make recommendations based on that information. It’s important to not only have insurance but to have the right kind of insurance to meet your needs. To discuss your Raleigh business insurance, call ACF Insurance at (919) 661-1100 and we will provide you with more information about insuring your home office.