Working From Home Insurance?

Do I need extra insurance to work from home?

Possibly. It depends upon the type of work you are doing, and the terms and conditions of your current home insurance company.

Do I have to inform my home insurance company that I am working from home?

It would be as well. Some of them forbid home working, and you could be in breach of the terms and conditions of your policy.

How do home insurance companies feel about their customers working from home?

It varies. Some insurers will not cover home work at all, some will only allow clerical work, some will allow it if you work for a company but not if you are self-employed, and there are others who are quite happy with it. There are those that will accept it but ask for additional premiums, and those that will not.

This is why comparing quotations from different insurers may be an excellent idea!

Why should my home insurance company object to me working from home?

There are a number of factors could make you a slightly more risky proposition to an insurer. These are: -

• You may hold stock at home, which could be a fire hazard or a target for thieves
• You may have additional office equipment such as computers, laptops or other electronic equipment in the house
• You may have people calling at your house in connection with your work or business.

Do I need to take out extra insurance to cover office equipment?

This again depends on the terms and conditions of your existing home insurance policy. Some insurers will not cover more than a certain total value of home contents, and there are often limits on the amount they will pay out for individual items. Do bear in mind however that if you work for an employer from home, any equipment that your employer provides you with should be covered by their own business insurance.

Can I run my own business from home?

You should check with your local authority, as well as your insurer, to find out what their restrictions are. If you are only doing clerical type work at home you may be in the clear but there may be bans on you providing a service from home, which involve people calling at your house, such as bed and breakfast, hairdressing or dressmaking; or doing any form of manufacture.

Would I need any additional insurance as well as house insurance?

If you employee anyone yourself, as against having a helper who works for your own employer, you would probably have to take out employers liability insurance as well. If you have regular visitors to your home you may consider getting public liability cover, which could protect you in the event of someone having an accident in your home or suffering any loss that you were held to be responsible for.

So since I am working from home, what should I do?

You should inform your insurance company right away. They may ask for an additional premium but on the other hand it may be reduced as well, since if your house may be occupied all through the day, rather than being empty whilst you were away at work, there would be less chance of burglary or problems such as fire or flood going unnoticed for a long while.

You should inform them of every type of work you are doing. If they find any of these are unacceptable you could find alternative cover by comparing home insurance quotations.