Home Insurance Needs for Telecommuters

As of 2007, it is estimated that over 43 million people are telecommuting or running a home–based business. With the gas prices being what they are, that number will most likely increase. The benefits of a 10 second commute time and the opportunity for increased productivity also bring about the need for working from home coverage or home office insurance.

Why?

Even though you're sitting at your kitchen table or in a dedicated home office, you're still running business equipment that needs to be covered as if it was sitting in a cubicle or office space. And you may not find enough coverage with your existing homeowners insurance policy.

The Limits of Homeowners Insurance
If you are telecommuting and experience a flood or fire in your home and you turn to your homeowners insurance policy to cover the replacement of business equipment, you'll find there is a $2,500 limit on equipment that was damaged. This includes the computer, printer, scanner, monitor, phone, and all the other business equipment your employer provided to do your job, which could easily exceed that amount.

In the same policy, if you're traveling and have your $1500 laptop stolen at an airport, then you're limit is even lower at $250.00.

How an Endorsement Can Serve Telecommuters
The good news is, there is an answer to the $2,500 limit on your homeowners insurance policy.

By speaking with your insurance agent, or if you are shopping for home insurance online, ask about adding an endorsement to the home insurance policy. This can increase that limit up to $5,000, which should, in most cases, provide you the coverage you need.

Other Things to Consider About Telecommuting

If you are in a position like outside sales and use your personal car to travel to the airport or for client meetings, if you get into an accident your claim may be rejected. Personal auto insurance coverage is typically limited to personal travel or traveling to work. A business auto policy can provide the coverage you need in the event of an accident, any third party property damage you may cause, or bodily injury where you are legally liable.

This brings us to the issue of liability insurance. Even if you are employed by a company and are not self–employed working from home, you may still be at risk for a lawsuit if someone is injured on your property. This could be a one–off meeting with a co–worker or client, or a package delivery person who slips and falls on your property. Take another look at your homeowners insurance's liability coverage, and if need be, talk to your insurance agent about adding an umbrella policy to your coverage.

See how much you could save today on your home insurance. Get your free home insurance quotes today!

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