How Important is Home Insurance if you Work from Home?

Working from home is becoming increasingly popular as the costs of travel go up and people increasingly have more freedom to be flexible with their daily work schedules.

This has some implications for home insurance as people who work from home will start to have more expensive equipment in their properties such as computers that might have important data on them.

Normally a general house insurance policy doesn’t cover a business to be operating from home.  If you have laptops or equipment that you take out of the house you might consider taking out an “all risks” policy which would cover items taken outside of the house for loss or damage.

Depending on your business you might also need to take out some form of business insurance such as Public Liability Insurance.  If you have people visiting your home to do business, the chances are that you will need Public Liability Insurance to protect you if they have an accident in your home.

When you buy your contents insurance make sure that it has cover for the most expensive items in your home.  Some contents insurance policies won’t cover items that are worth over a certain amount, quite often £2000.  Be careful of this and check your policy carefully because you don’t want to find out that you aren’t covered when you really need it.

If you change your circumstances and start working from home, don’t forget to update your contents insurancepolicy to meet your new situation.  It’s quite easy to forget but it’s important to do because the home policy you have might not be valid if you need to make a claim.

Working from home might mean that you have to pay a higher premium for your home insurances and even lead to you having to buy a separate business insurance.  It could well be worth it however if you were to end up in the unfortunate position of having some expensive equipment damaged or stolen.