insurance

6 overlooked insurance policies

Business in the home coverage
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This type of coverage protects home office furniture, equipment and supplies used for business purposes. It's a good idea for anyone who keeps at least a few thousand dollars worth of these items in their home, Wilson says.

"Most homeowner policies limit coverage for damage to property used in a business to $1,500 or less on the premises and $500 or less off the premises," he says.

Many standard homeowners policies cover property as long as it is not used "primarily" for business purposes, he says.

"So, if you used your home PC occasionally for business, the limitation probably would not apply," Wilson says.

However, other homeowner policies will not cover any furniture or equipment that is used for business purposes at any time.

"Under that restriction, the limitation would apply to a home PC if it's ever used for business," Wilson says.

Business in the home insurance also covers liabilities that most standard homeowners policies do not.

For example, this type of coverage would protect you if a client comes over for dinner and ends up with food poisoning, or trips and falls in your home and is injured.

The cost for this type of coverage depends in large part on the type of business and the value of its contents and inventory. Therefore, adding such coverage may cost as little as $75 per year, or may exceed $300 annually.


 

 

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