Make Sure Insurance Covers Your Home Business
If you are thinking about starting a home-based business, check your homeowners policy to find out how much coverage you will have for your office equipment and liability issues. Many homeowners are under the misconception that their current home insurance is enough to cover their new business, according to the Insurance Information Institute. However, you can buy additional insurance to adequately protect your business and your assets. Make sure you apply for home insurance quotes to get the best rates and coverage for all your needs.
With many Americans unable to find a job, many are deciding to start businesses in their homes. In fact, 52 percent of all the small businesses in the U.S. are home-based. The U.S. Small Business Administration defines a small business as one having fewer than 500 employees. According to the latest available Census data, there were six million small businesses with employees in 2007 and 21.4 million without employees in 2008. Before you start a business in your home, obtain home insurance quotes to ensure you have sufficient coverage.
Standard homeowners policies cover your property and possessions from such losses as damage and theft. They don’t cover home-based business losses. However, you may be able to add a simple endorsement or rider to your existing homeowners policy to double the $2,500 standard coverage for business equipment. For an additional premium charge, you can raise limits to $5,000 or $10,000, according to the Insurance Information Institute. Adding an endorsement to your homeowners policy is an inexpensive way to protect your office equipment. But home insurance policies also don’t provide business liability or business income protection. Make sure you review your policies, when you obtain home insurance quotes.
If you want to protect your personal assets in case an employee, customer or delivery person is injured on your property and sues, you can buy a homeowners liability endorsement. This coverage is typically available to businesses that expect to have few business-related visitors. According to the Insurance Information Institution, these endorsements are available in most states. You can also increase your personal liability coverage on your standard home insurance policy with an umbrella policy.
Many home insurance companies offer in-home business policies and bundled them with standard homeowners policies. (Stand-alone in-home business policies are also sold by some specialty insurers.) An in-home policy will provide more comprehensive coverage for business equipment and liability than a homeowners policy endorsement. The cost depends on your business, safety issues and the coverage. Determine how much coverage you will need, before you apply for home insurance quotes.
Remember when you buy a homeowners or a renters policy, you’re insuring the structure of your home and your personal belongings in your home. Once you have determined the best coverage for your family’s needs, you’re ready to obtain home insurance quotes. Call agents in your local area, contact several insurance companies directly or use InsuranceQuotes.com to instantly get competitive home insurance quotes from the nation’s leading insurance providers. Take the time to protect you and your family today.