Should you update your homeowners insurance if you're working from home?

As working from home becomes more common, you may need to update your homeowners insurance to ensure you are properly covered.

The coronavirus pandemic forced many employees to leave their offices and work remotely. As our nation enters into a period of recovery, both companies and employees are weighing the pros and cons of returning to the workplace, with some businesses permitting more employees to continue working at home, either part-time or full-time.

As new technologies enable more business operations to be completed in a remote setting, it wouldn’t be surprising to see working from home rise in popularity. Although the "working" aspect of working from home seems pretty cut and dry, homeowners may wonder if this lifestyle change will have an impact on their homeowner insurance policies. 

Are you searching for a new homeowners insurance policy? Visit Credible today to explore your home insurance options. 

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Does working from home affect your home insurance?

Does working from home affect your home insurance? Yes and no. Generally speaking, a homeowners insurance policy is not designed to cover a home-based business, work completed under part-time or full-time employment or any business conducted as an independent contractor or consultant, according to The Balance. Because of this, some policies also include exclusions related to injuries or incidents that happen on your property while you are completing any business-related activities. 

While working from home on a permanent or semi-permanent basis may not directly impact your existing homeowners insurance policy, it may make sense for you to update your homeowners insurance policy or take out an additional policy that’s specifically related to working or conducting business from your home. 

Wondering how much you could save on your homeowners insurance? Head over to Credible who has partners to give you a free quote. It only takes two minutes.

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When should I update my home insurance?

Is now the right time for you to update your home insurance? That depends on your current and future employment needs. If you’re planning on returning to in-office work soon, you may not need to investigate home insurance updates. This includes if you’re using a personal laptop and minimal "low-value" equipment when working from home; it’s likely that your homeowners insurance policy will cover these items under your sub-limit. If you’re working from home indefinitely, however, it’s a good idea to start considering your options for updated home and supplementary business insurance. 

Regardless, it’s always a good idea to review your home insurance annually to determine what updates are necessary. When the time is right to update your home insurance, you can compare home insurance companies and shop their plans via Credible. Comparing quotes is an important step in getting the rate that fits your needs and budget, but it can take time. With Credible’s partners, you can eliminate the time-consuming part of your search

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If I'm working from home, what insurance do I need?

Depending on your unique situation, you may need another form of insurance in addition to your homeowners insurance policy, per The Washington Post. If you are a full-time employee of a company, the company’s employer business liability insurance should extend to you and cover injuries or incidents that happen to you or company property when you’re working from home. 

As a business owner, however, you may need a business insurance policy in addition to your homeowners insurance. Commercial liability insurance is a broad policy most business owners select to cover bodily injury, property damage and personal injury via advertising. If your home-based business has employees, you may need workers’ compensation insurance. A commercial property policy will cover any high-value business equipment that exceeds what your homeowners insurance sub-limit would cover. 

To make sure you’re not overpaying for homeowner’s insurance, it’s free to check online through Credible’s partners. 

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Final thoughts

As working from home becomes more common, it’s important that you understand how you and your equipment are covered under your current homeowners insurance policy. Speak with your current policyholder and your employer to determine where your home and business insurance gaps may put you at risk. This is especially important if you conduct any business outside of your home, as you need to ensure that your policy covers injuries or incidents that occur off of your property.

Ultimately, you need to make sure that your home insurance provides you with the coverage you need at the rate that fits your budget. Comparing multiple insurance quotes can potentially save you hundreds of dollars per year. And, it’s so easy to get a free quote in minutes through Credible’s partners here. 

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