In the last 5 years, we have witnessed a big change in the way we work. Remote work used to be quite rare but swiftly became the norm for many professionals globally. Instead of returning to the office space, many people have opted to have their office space set up at their homes. We will look into how working from home has affected home insurance policies and what you should consider when looking for home insurance when you work from home.
Usage Changes and Liability Concerns
Home insurance policies used to be based on the assumption that homes were used primarily for residential purposes. But with the rise in people working from home, insurance companies must take into account potential liabilities that could stem from the business activities being conducted. For example, in the case that you have a work accident while working from home, you may require additional coverage.
Valuables and Equipment
Many professionals work with valuable electronic equipment such as laptops and monitors. Homeowners that work from home should make sure that their insurance covers any equipment used for work-related activities. Sometimes work equipment is insured by the employers’ business liability insurance, so you should check what part of your equipment is already covered.
Home Renovations and Improvements
After passing a great part of their time at home in the last few years, many homeowners that work from home have invested in home renovations and improvements to create a comfortable workspace. While this enhances the home’s living environment, this can also impact insurance coverage. Office spaces such as garden studios or home extensions will increase the value of the property. When doing renovations on your home you should make sure that your insurance covers the additional space, your insurance provider will sometimes adjust coverage limits to adequately protect your home.
Our Tips for Home Owners Working from Home
Review Your Policy: It’s crucial to review your existing home insurance policy and discuss any potential changes in usage or home improvements with your insurer. This will help you understand whether your current coverage adequately addresses your needs.
Consider Additional Coverage: If your remote work setup involves expensive equipment or increased liability risks, consider purchasing additional coverage or endorsements to your existing policy.
Document Your Workspace: Keep a detailed record of your home office setup, including valuable equipment and improvements. This documentation can be invaluable if you need to file a claim for damage or loss.
Communicate with Your Insurer: Communicating with your insurance provider is key. If you’re unsure whether certain aspects of your work-from-home setup are covered, seek clarification from your insurer to avoid surprises down the road.
You should especially make sure that you contact your insurer if any of the below applies to you:
- You create, sell or store products at home
- You have clients visiting your home (for example people working in the beauty industry such as hairdressers and make-up artists)
- You have employees or colleagues visiting or working from your home
- You have adapted your home to your business (for example building a home office or garden office)
- You have new equipment that belongs to your business
- You are moving your businesses’ office to your home
When working from home you should make sure that your new office is completely insured to protect you and your business from uncertainties. If you want to make sure that your home is properly covered do not hesitate your insurance provider. At Acer Insurance we have over 25 years of experience in home insurance, if you have any questions regarding Home Insurance, you can call 01959546823 or contact us by email.