Do you run a business out of your home? Without having to deal with renting expensive office space, possible tax deductions, or hiring few—if any—employees, running a business out of your home is becoming more and more attractive due to progressive and continuous changes in our society and economy.

More than half of the businesses in the United States are based out of the owner's home, with more being added every year, according to research by the Small Business Administration. A lot of people think their homeowners' insurance policies cover their home-based business needs when mayhem happens, but the reality is that most homeowners' policies don't.

Typical home-based businesses are usually through brands like AVON, Amway, Creative Memories, and Tupperware. If you run a home-based manufacturing business (think Etsy or carpentry), then you've also invested in the tools and materials to create and sell your wares. Think about the value of the inventory in your possession; is it an amount you can afford to lose? What if someone steals it or your house catches fire and destroys your inventory? What then?

We've recently had a lot of fires ravaging our area here in Fort Myers and especially Naples. One fire in Lehigh Acres burned thirteen structures and another fire that burned 7,000 acres in Golden Gate Estates burned several homes to the ground. If a home-based business was lost due to any of those structures burning down, your homeowners' policy would not cover the loss of the inventory.

Examples Where a Home-Based Business Policy is Essential

Most homeowners policies will not protect you in the following common situations, but a Home-Based Business policy would:

  • Someone steals some of your inventory at a craft fair
  • A fire at your home damages your inventory
  • A customer slips and falls, injuring themselves, at a pop-up party in your home
  • A friend, who was drinking wine at your pop-up party, gets in a car accident on the way home, and you are held liable 

What a Home-Based Business Policy Covers

A Home-Based Business policy offers important coverages, including, but not limited to:

  • Coverage for the property you sell while it's at your home (up to $100,000)
  • Coverage for the property you sell while you are off the premises of your home ($15,000)
  • Liability coverage (up to $1,000,000)
  • Coverage for loss of income

If you would like to receive a quote for your home-based business, please contact us about a home-based business policy, or give us a call. Now would also be a good time to perform an Annual Policy Review on your homeowners insurance to check your coverages and discounts.