How to Insure Your Home Office

Working from home has its perks, and we’re not just talking about the wearing sweatpants to a conference call or being able to fire up the grill for a midday meal kind of perks. Working from home may mean lower stress levels and saving on commuting costs.

But if you make the switch to working from home, you may need to be aware of your new insurance needs.

Working from Home

“The convenience and not having the expense of an office space make working from home an attractive option for many people,” says Melinda Miller, an Abilene resident. Miller has been an Agent with Texas Farm Bureau Insurance for two years, where she has helped her customers get the coverage they need to insure their home offices against any theft, loss, or damage.

Insuring Your Office

“A typical homeowners policy provides coverage for the contents of the office up to $2,500,” Miller says. This policy typically covers computers, business supplies, and equipment for the office. 

“If more is needed, homeowners will need to get a business owners policy to cover any additional items, especially if they plan to have clients coming into the office, in which case they will need to increase their liability coverage as well,” Miller says.

Additional Needs

Be sure to check with your Agent if your home office plans include:

• Additional employees.
• Work vehicles.
• Customer/client access.
• Expensive or highly specialized equipment.
• Travel for yourself or your employees. 

Documentation

Beyond helping you obtain the right amount of coverage for your home office (Miller recommends having high liability limits to ensure your coverage is all-encompassing), your Agent can also help you determine which endorsements are required for your unique situation, like the HO-205 endorsement, which applies to any office, private school, or studio that occupies a space within a residential building.

Other Considerations

Further considerations for working at home include:

• Checking with your local zoning committee to make sure home businesses are allowed in your community.
• Obtaining the appropriate licenses and permits required for your home business.
• Meeting with a tax professional to discuss your new tax needs, including whether or not you’ll need to start paying estimated taxes and if you’ll be eligible to utilize home office deductions.

Contact your Texas Farm Bureau Insurance Agent today to see if your home office is eligible for additional savings with home insurance bundling, or to simply run through a quick checklist to make sure you are ready to open for business.

For more financial advice, find out how refinancing your home could affect your insurance premium.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation.