Is Work-From-Home Covered by Homeowners Insurance?

During the Coronavirus pandemic, the majority of American employees were told to work from home. Even though the situation has improved, many of them are still working remotely, either all the time or for part of the week. To prevent serious financial issues, these employees have to make sure that they are insured against problems related to their work. Today, we’ll have a look at whether homeowners insurance covers working from home.

Is Work-From-Home Covered by Homeowners Insurance?

Working from home can be riskier for the employee and the company than working in a dedicated office space. For example, clients might need to stop by your home and drop off paperwork. If their property gets damaged or they get injured while at your house, you’ll be liable. If the same happens in an office, you can rely on your company’s general liability insurance to cover the damage.

In many cases, home insurance can provide you with the cover you need. Additionally, some issues, such as a problem with your work laptop or other business equipment, might still be covered by your employer. However, the lines are much more blurred than when you work from an office, and you should speak to your insurance agent about your potential risk factors. In some cases, you might need extra insurance.

When Are You Not Covered?

Your personal property is covered in your home insurance, but if you use items for work, the limits might be significantly lower than if you use them for personal reasons. This is because business equipment insurance often only covers $2,500. If you use work items that are more expensive, insuring them separately could be a good idea.

Another potential problem could be clients coming to your house for discussions or meetings. Most home insurance policies don’t cover liability issues related to work, so you’ll need to think about getting additional insurance. Even if you believe that your home isn’t very risky, it’s better to be safe than sorry. Slip and fall accidents or similar problems happen faster than you might think, and they can result in a very expensive lawsuit.

What About Car Insurance? 

When working from home, you no longer have to commute by car every day. As a result, you might drop some types of insurance, such as roadside assistance, to save money. However, this could be a bad move because you might still be at risk, even if you don’t drive as often as before. People who use their personal vehicle for work-related purposes should check whether these trips are covered, either under their personal insurance or their employer’s policy.

Some aspects of working from home are covered by insurance, but others aren’t. People who have more than $2,500 worth of business equipment at their house or those who are regularly visited by clients should consider getting extra protection. Get in touch with us at Absolute Choice Insurance to speak to an experienced agent about your needs. We will be pleased to analyze your situation and help you find the cheapest, most comprehensive insurance possible.


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