Working from home is becoming more popular than ever. The advances in technology have made it possible to do most jobs from any location in the world.  And, parents love having the flexibility to structure their work schedule around their kids’ schedule.

When a home office exists, how does insurance respond if a fire completely destroys the home? It is important to note that an office inside of a home is typically covered differently than an office located in a separate building on the property.  Coverage for office equipment in a home office is limited under a homeowners policy form.  Separate structures (such as a detached garage) are not covered at all under a homeowners insurance policy if there is a business inside of them.

A fire that causes a total loss, could have significant out of pocket costs to repair or replace equipment or a separate structure. The cost of replacing office equipment can be substantial and coverage under a homeowners policy form is usually limited. The cost to rebuild a separate structure used for business purposes on premise is even more costly and could be financially devastating.

It is important to check with an insurance agent to see if it is possible to add extra coverage to the homeowners policy for equipment located in a home office. The cost of adding this type of coverage is usually minimal.  It is also important to check on insurance coverage for a detached building on premise.  Typically, a separate policy can be written on a commercial insurance coverage form to insure the structure, contents inside the structure and liability coverage for the business.

Working from home is appealing to many people. It is important to consider insurance coverage if you are considering this type of venture!