If you work from home, you may be led to believe that your home business is protected by your homeowner’s insurance. However, that may not be the case – especially if you have business inventory stored in your house. In Texas, many home insurers refuse to cover the business assets located inside of a home. Depending on how your business is organized, this may include inventory products.
When you purchase a homeowner’s insurance policy, be sure to discuss beforehand your insurer’s policies regarding claims for replacement of home business equipment and inventory. In some cases, your insurer may offer coverage up to a specified amount, such as $1,000. However, rarely will a home insurer provide coverage for business assets worth several thousand dollars or more.
Be up front about your intentions regarding your home’s use for business. Not only will your insurer possibly refuse to cover your business assets in the event of a loss, but you may lose your homeowner’s coverage altogether if your insurer finds out you have been using the home for business purposes without notifying your insurance carrier.
If you regularly keep business inventory in your home, ask your insurance company about your options for coverage. Some Texas insurers offer home and business combination policies or separate business insurance coverage altogether. Although these types of policies may cost you more than your primary homeowner’s insurance would alone, you can rest assured that all of your assets – business inventory included – are protected.