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Homeowners insurance coverage needs depend on if you’re employed or running a business.

In recent years, working from has become more common than ever. But how does it affect your homeowners insurance – and can it cost you more or less money in the long run? Here’s a brief look at what you need to know.

Can working from home affect your homeowners insurance?

Homeowners insurance only covers personal property.

Your personal property, including business equipment, is covered by homeowners insurance. However, the standard limit is typically $2,500. Considering the cost of technology, including a computer, router, printer and backup drive, you may want to purchase additional property coverage.

Employers are responsible for equipment they own

If you work from home using employer-owned equipment, insuring the equipment is your boss’s responsibility, meaning it wouldn’t impact your overall homeowners insurance.

What if you operate your own business out of your home?

If you run a business from home, you might need business insurance in addition to your homeowners policy. Coverages you should consider include:

• Business property insurance: Provides protection for equipment, supplies and inventory owned by your business.
• Liability: Needed when people visit your home for business purposes, you provide a product or your business activities could result in damage to property or injury to a person.
• Business auto insurance: Needed for a vehicle used for business purposes, including making deliveries.

How comprehensive is your existing business coverage?

Be sure to take inventory of your business property at least once a year to ensure that you have adequate insurance coverage. You don’t want to find out after a loss that your coverage limits are too low to replace what you have.

Plan for premium payments

Homeowners insurance premiums are one of a homeowner’s biggest recurring expenses. You can avoid taking a budget hit and save money on installment payment fees by setting aside funds in a Consumers savings account. Divide your annual premium by 12 and make sure to save that amount each month. For example, a $1,200 premium, would require you to save $100 each month in order to have the cash on-hand when the annual bill is due.

Will your homeowners insurance be affected by working out of the home?

In many cases, your insurance will only be affected if you own and operate your own business out of your home. You may, however, wish to check with your insurance provider to confirm.

Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

Learn more.