The Impact of Remote Work on Home Insurance Needs
Your home policy is designed to protect you from the unexpected liabilities and costs that could be associated with being a homeowner, but those liabilities can be a bit different when your house doubles as your office. With work-from-home (WFH) arrangements on the rise around the globe, it’s critical for homeowners to understand the relationship between remote work and home insurance.
If you work from your house, you may not have even considered that doing business out of your house could impact your policy. However, standard policies may only cover certain aspects of telecommuting, and you don’t want to be left in the lurch if you have to file a claim. Whether you operate a business out of your house or are simply starting a new remote job, exploring a few WFH homeowners insurance basics is the best way to get the protection you need.
The Rise of Remote Work and Its Impact on Insurance Needs
Modern technology has made it possible for many companies to offer telecommuting as an alternative to working in the office. WFH situations have skyrocketed in recent years, with many people working remotely some or all of the time. While telecommuting can be appealing for both employers and employees, it has introduced some unexpected challenges when it comes to remote work and home insurance.
Many employers have business coverage that will help cover remote employees in certain situations. However, in other situations, the worker and homeowner will need their own coverage.
How Insurers Are Adapting to Remote Work and Home Insurance
Insurers have begun to recognize the gray area between personal and business use of your house. As a result, they’ve started introducing special riders and add-ons designed specifically for people who telecommute. Some basic homeowners policies also offer limited protection for remote workers in certain situations. However, not all providers will have the same standard coverage for WFH employees and business owners, so it’s important to be proactive and check your specific policy.
Evaluating Your Insurance Coverage for Home Offices
Does my home insurance cover my home office? It depends. If you own a small business that you operate out of your house, your coverage needs will be different from those of a hybrid employee who occasionally works out of their personal office. By exploring some everyday situations, you can get a good idea of whether your current policy is enough.
When Standard Home Policies Fall Short for Remote Workers
When using your house for business use, you may have extra liabilities. For example, if someone visits your property for business purposes and gets injured, you might need extra protection. If you’re a standard telecommuting employee, your employer’s plan may come into play and give you additional coverage. However, if you own your own business or do freelance work, you likely need extra professional coverage.
Special Considerations for Adding Professional Coverage
If you work from your house in any capacity, talk to your insurer about your options. They can explore add-ons such as general liability, professional liability, or business income insurance. You can also add riders to increase property coverage for business-related equipment.
Protecting Company Property in Your Personal Space
If an accident occurs on your property and company equipment is damaged, you may have to make a claim. Check your homeowners policy to see whether the company property is covered or if you need to purchase an add-on to get the protection you need. You can also talk to your employer about policy safeguards they already have in place for any company property they send to telecommuters.
Protect Your Home Office and Beyond — Explore Home Insurance With Freeway
Working from home insurance can be a helpful add-on to fill any gaps or gray areas in your coverage. Whether you telecommute or own an at-home business, it’s your responsibility to communicate with your insurer about your coverage. Planning ahead to tackle any extra risks can give you valuable peace of mind and financial protection in the long term.
If you’re a first-time homeowner closing on a house or someone starting a WFH job, it’s a good time to take a look at your homeowners plan and shop around for upgraded coverage. At Freeway, we provide comprehensive protection designed to keep your personal and business assets safe. Connect with us today by talking to an agent at your local Freeway Insurance office, getting an online quote, or calling us at 800-777-5620.
FAQs About Remote Work and Home Insurance
To learn more about whether you need insurance to work from home, check out these common questions and answers:
Will My Home Insurance Cover My Work-From-Home Equipment?
When asking your provider, “Does my home insurance cover my remote office?” you need to consider both the office space itself and the work equipment you keep in the space. In most cases, your homeowners policy will cover the actual structure of your house. It may also have some basic protection for business-related equipment. However, this coverage is typically limited to a max of $2,500.
If you only have a laptop and a work phone, your policy will likely give you more than enough protection. But if you’re a freelancer or business owner, you probably have extra equipment and inventory that won’t be covered.
Do My Remote Employees Need Their Own Liability Insurance?
So what if you own a business with employees who work from their own houses or apartments? Luckily, business-related claims that happen on their property will likely be covered by your business liability plan. In most cases, your employees won’t need their own personal liability plans. However, they may choose to get an extra rider to expand their homeowners or renters policies for extra coverage in pesky gray areas.
Can Working from Home Void My Current Insurance Policy?
As a homeowner, it’s your responsibility to be honest and up front with your insurer. They set up your policy and your rates based on several factors, including the extra liabilities related to doing business on your own property. If you don’t discuss your remote work and home insurance up front, your insurer could deny future claims or even cancel your policy altogether. Being honest is the best way to get the coverage you need and make sure you’re in compliance with your provider’s rules.
Should I Inform My Insurance Provider If I Start Working Remotely?
Even if you don’t end up needing to modify your plan, it’s a good idea to let your insurer know if you decide to start telecommuting from your house. During your standard policy review, mention any changes in your working and living situation. They’ll be able to make sure you have the protection you need for your unique working situation.
