Will Homeowner Insurance Help Protect a Home Business?

Home business protection safeguards your livelihood. In the event of unexpected disasters, like fires or theft, it ensures that your business assets are covered, helping you recover and continue your operations without a significant financial setback. Because Florida homeowners insurance doesn’t always adequately cover home businesses, you might have to take out additional policies. 

In Florida, your regular homeowners insurance can offer some coverage for business items stored at home, but there are limitations. Many homeowners insurance policies provide a limited level of protection for business property within your residence, but this might not cover the entire value of your items. 

Additionally, if you have business items outside your home, there might be even less or no coverage at all. Because every homeowners policy is different, it’s advisable to speak to your insurance agent or provider before you set up your business at your primary residence. You might have to take out additional insurance to make sure your home business is fully protected. 

Some insurers permit policyholders to increase home coverage limits. This added coverage can safeguard business supplies or inventory temporarily stored in your home while waiting for sale or delivery to customers. For example, if your policy initially covers business property up to $1,000, but a fire incurs a $5,000 loss in inventory, you’d typically need to cover the $4,000 difference yourself. 

However, if you invest in optional business property coverage, say, $7,000, it would fully cover the $5,000 loss. It’s important to remember that specific types of equipment or structures, like electronic equipment, might not be covered under this policy. For comprehensive protection, consider an in-home business policy, which offers broader coverage.

People running a business from home should speak to insurance agents to ensure they have the appropriate coverage and understand potential risks. Send us a message at DTRT Insurance. We’ll evaluate your current policies and help you determine whether you need to purchase additional in-home business insurance.