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Does your homeowners policy cover a home business?

More people run a business from home than ever, and most assume homeowners insurance has them covered. It usually doesn't — homeowners is written for a home, not a business, and the gaps show up exactly when a claim does.

What homeowners typically limits

Business property in the home — inventory, equipment, computers — is often capped at a low sublimit, sometimes just a few thousand dollars. Push past it and the rest is on you.

The bigger gap is liability

A client trips on your porch, a product you sell causes harm, your work causes a loss. Homeowners generally excludes business-related liability. That's not a small hole — it's the whole reason businesses carry liability coverage.

What to add depends on the business

See our home & auto page for the personal side.

Tell your carrier

Running an undisclosed business from an insured home can complicate an unrelated claim, too. Honesty keeps the whole policy clean.

One caution: "it's just a side thing" is how uncovered claims start. If money comes in, insure the activity.

Running something from home?

Tell us what you do and we'll cover the business properly — without overpaying for coverage you don't need.

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