Homeowners insurance and home businesses United Policyholders Staff asked 3 years ago
Homeowners insurance and home businesses

I am looking for information on homeowners insurance companies who are willing to insure homeowners who are running a craft-based business out of their homes. I am not looking for information on business insurance, but specifically for information on homeowner’s insurance, and how homeowners insurance interacts with home-based businesses. Thanks.

1 Answers
David Shaffer David Shaffer Expert answered 3 years ago

First, a homeowner’s policy basically is not designed to cover any business run out of the home but for a very few exceptions. Those exceptions would be most likely spelled out in your policy and would probably exclude your type of business. Second, with that said, over the years some insurance companies now allow you to buy “business insurance” as an endorsement to your home insurance policy for a home-based business. You are a business owner. You run a business and the only way to insure your business is with business insurance. So indeed you really need to look for business insurance but business insurance that may be available for you as an endorsement to your existing home policy, if the carrier offers something, or from another carrier if your current insurance company does not offer this option for you. Third, if no home insurer will insure your specific type of home-based business, you may have to turn to a real business-only policy commonly called a BOP, aka Business Owner’s Policy. A BOP typically has a minimum premium of $500 per year. The minimum annual premium to add coverage for a business on a homeowners policy, if you qualify could be less depending on how much coverage you need. I hope this helps.