Have A Home Business? Verify If You Are Covered With Renter's Insurance

28 February 2017 by Elijah Steward

If you rent an apartment and also work out of your home, you most likely have a home office that you use regularly. Do you know for sure if your office is covered with a basic renter's insurance policy? It is worth finding out, because a loss due to fire or theft could be devastating to your business. Here is what you need to know.

Does Your Renter's Policy Have Limits?

Most policies for renter's insurance should cover a home office, with there being a limit to how much the policy will cover. Home offices can vary from one business to the next. For instance, one person may have a basic desk and computer, while another person could have inventory of things they have created or are selling.

You'll want to check with your local insurance agent to find out if there are limitations to the policy, what those limits are, and what will happen if you go over those limits. This is definitely something you do not want to be caught off guard with once something does happen to your apartment that requires making a claim.

What To Do When Coverage The Limit Is Low?

When you are lacking the coverage that you need, there are several options that you have to make up for it. Your best option will be to get an endorsement. This is additional coverage that is added onto your existing renter's policy, and will increase the coverage amount so that all your belongings in your apartment are covered. This could be great if you need a little more coverage to make sure you are protected.

Your agent may advise you to get an actual business insurance policy instead. These are policies designed specifically for people with home offices, and are ideal if you have expensive equipment and inventory that you need to ensure are covered. This policy will be best for those that have people visiting their apartment for business related matters. It gives you protection just as if you had an actual office location, with coverage for liability for if a client is injured on your property.

Don't make the mistake of assuming your current insurance coverage will include all aspects of your office. Speak with a homeowners insurance agent so that you can work out a policy that works best for you and the needs of your business. You may be surprised to learn that the additional coverage can be very affordable and give you peace of mind.

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