move your business home
As the economy continues to give many people a run for their money, thousands have decided to ease their overhead by moving their office to their home. The cost savings can be tremendous, and downsizing can be therapeutic in terms of organizing your life. However, you need to be aware that your homeowners insurance may not cover your home office. In fact, in some cases some insurance carriers will refuse to cover your home, if you have a business in it.
The reason that some carriers will decline coverage generally boils down to issues of liability. Consider that you’re an accountant, and you’ve decided to turn your guest house into your office. Seems easy enough right? Well, in the insurance industry, which makes decisions based on risk, having a home office has just made their risk go up. Should a client come to your home for tax advice, and heaven forbid trip and fall over a sprinkler, or garden hose, or uneven stairs; as the homeowner, you may be liable for their injuries.
Other home based businesses that may need additional business, or general liability coverage may include a photographer, a real estate agent, or those who run a daycare from their home, (the latter of which may be a big no-no for some insurance carriers). Basically, if you’re making the switch to working from home, you need to have a chat with your agent.
But there’s another reason you may need additional coverage. If you work from home, it is quite possible that your business equipment may not be covered under your traditional homeowner’s policy. (Although some homeowners policies will specifically cover computers). Should you experience an unfortunate incident such as a break in, or a fire items such as computers, printers, fax machines, etc, may be deemed a business loss, and therefore you’ll be unable to file a claim for reimbursement.
So, before you make the move to your home, contact your insurance agent to see what, if any, additional coverage you may be required to carry. (Or, and this is less common, if you have to change insurance carriers altogether to protect yourself from injury claims or loss of business equipment).
The good news though is that except in very, very rare cases, the increase in your premium will still amount to less than paying a lease on commercial property. But, do yourself a favor, and organize this part of your business before you move into a home office. Just because you’ve moved your business, does NOT mean you can automatically cut out business insurance. Business and personal insurance need to be considered two separate coverages. So don’t do anything drastic. Just take a few minutes to talk with your agent, and I guarantee it will give you peace of mind knowing that your business and any visiting clients are fully protected.
For questions about homeowners and business insurance shoot me an email at nnicholson@tcinsurance.com
blogger bio
Nancy Nicholson is no California native. In fact, she spent the first nine days of her life living in Denver, Colorado. But most people don’t hold that against her, as she is a true Southern California girl through and through. As an insurance agent with Santa Clarita Insurance Services, Nancy’s spent the last 20+ years of her life advising clients in all things related to minimizing risk through properly insuring your home, business, auto, life and health. That is, she’s something of an insurance guru, which has led her clients to affectionately deem her “The Insurance Doctor.”
But all work and no play makes for a really dull existence, so Nancy spends her off hours blending work and play via networking with others. She is inspired by other entrepreneurs, and enjoys sharing and hearing the stories like minded friends who also value the personal growth that comes from being professionally successful.
As a mother of two adult children, Nancy’s spare time is spent with friends and family. That is, when she’s not focusing on a long held passion for competitive swimming. In fact after having retired from competitive swimming for 30 years, she’s recently rediscovered her love of the sport, andrecently placed in the top 20% nationwide.
An avid traveler, Nancy loves road trips off the beaten path, and counts Hawaii as one of her favorite getaway spots. In the future she plans to continue broaden the reach of her travels, and remain committed to community and volunteer service, but that doesn’t mean that she has any plans to retire. When you love your job as much as she does, it can hardly be considered work, so she plans to continue helping Santa Clarita Valley residents protect themselves and their futures for years to come. In the meantime, she’s going to share some of her best tips for protecting yourself, here at SceneInSCV.com.Contact Information for Nancy:
Nancy Nicholson | License # 0D50759 | Santa Clarita Insurance Services
28001 Smyth Drive | Suite 107 | Valencia, CA 91355
P: 661-964-0207 x 3202 | F: 818-223-8181
nnicholson@tcinsurance.com | www.santaclaritains.com
