Albert, who has Miami, FL renters insurance, runs a small consulting business out of his home. Albert writes with today’s question,
Does renters insurance cover business equipment in my home office? What if it’s partially business use and partially personal use? Is there an endorsement I need or should I get a whole separate policy?
That’s a great question Albert, and some great followup questions. Let’s get right into it.
Does Renters Insurance Cover Business Equipment In My Home Office?
Many people work from home either part time or full time. As a result, they wonder if renters insurance will cover equipment they use in their business. We’ll review some common scenarios and what coverage might be available..
Does Renters Insurance Cover Business Equipment In My Home Office?
The safest answer here is no, renters insurance does not cover business equipment in your home office. The business equipment belongs to the business, and you’re using it in the course of trade or business. Renters insurance is designed to cover personal contents only. Although, we have to be careful of the definition of business. If you’re an amateur photographer, and take pictures at a friend’s wedding, you’re still an amateur. If you’re advertising those services or making money off them regularly, that falls under the business exclusion and then the equipment would not be covered. There may be a sub limit for that sort of property, but read your policy carefully!
Does Renters Insurance Cover Personal Equipment That I Also Use For Business?
Does renters insurance cover personal property that I also use for my business? This one is a little more sticky. First, it depends whether you’re deriving a substantial part of your livelihood from that business. If you only make two or three small sales a year, it’s generally going to be considered personal property. On the other hand, if you’re using this personal property on a day to day basis in the process of earning income, you’ll find that it’s generally considered business equipment or property. In that case, you wouldn’t have coverage under a standard renters insurance policy. While there are endorsements for business pursuits that might provide coverage, that’s not the ideal way to cover that property.
Does Renters Insurance Cover Business Equipment?
Does Renters Insurance Cover Business Equipment With An Endorsement?
There is an endorsement available for that. However, that brings into question what liability you might incur while in the course of doing business. Even if the business property is covered, your liability rarely would extend to cover business pursuits. As a result, you may want to look into a commercial policy. They’re generally quite inexpensive, and provide liability and business property coverage to make sure that you and your business are protected.
Contact Effective Coverage today at (800)892-4308 to find out does renters insurance cover business equipment in my home, and to get a free review of your renters insurance policy to help you sleep better at night!