With the rise in remote and hybrid working, you may be wondering if this change in work setup has an effect on your home insurance policy. In this article, we look at whether your home insurance will cover you when working from home, what insurance you need if you run your business from home and the best way to buy home insurance that covers you when working from home.
Does my home insurance policy cover working from home?
In most cases working from home should not affect your home insurance policy however you should check your individual policy documents carefully to ensure you are definitely covered. This is because cover can vary between insurers and some may require you to notify them if you start working from home. In addition, there are some instances where you may need to notify your insurer that you are working from home as your cover could be affected. This includes - but is not limited to - the following:
- If you have regular visitors to your home address for face-to-face business meetings
- You sell or make items at your home
- You offer business services from home e.g beauty treatments or dog grooming
- You have built an outbuilding to accommodate your business equipment
If you decide to start a business from home or currently run a business from home you should have the relevant insurance in place as it is unlikely that your standard home insurance policy will cover you. These specialist business insurances should be in place in addition to your standard home insurance policies. If your home working situation has changed it is always best to notify your insurer as not doing so could invalidate your insurance policy.
What is covered on home insurance?
If you are working from home, any office equipment you use may be covered under your contents insurance policy. However, if your equipment is expensive and exceeds the value that is covered by your insurer you should contact them to see if the cover amount can be extended. If the equipment you use to work is provided by your employer this is likely to be covered under your employer's insurance so check with them prior to adding the equipment to your home cover. Contents insurance may also cover you if your possessions are lost or stolen when taken outside of your home. This is usually the case if you have personal possessions insurance or away-from-home cover. Some insurers have this included as standard but for others, this may be an optional extra.
If you have a shed or outbuilding that you work from (also known as a shoffice) you may also be covered under your home insurance policy. Some insurers, such as More Than, cover the building as well as the contents inside. Check your cover with each insurer carefully so that you know if you are protected in the event of damage to the building or theft of the contents.
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What insurance do I need when working from home?
If you are an office worker working from home full time or for a few days a week, you should be covered under your home contents insurance policy and in most instances, you will not need to notify your insurer. It is always worth reading your policy documents carefully, however, as cover can vary between home insurers. For example, More Than's premium home contents insurance policy covers clerical business equipment up to £7,500 which includes cover for office equipment such as computers, phones and office furniture.
If you are running a business from your home address, you will need to ensure you have the right insurance to cover you if something goes wrong. Exactly what insurance you need varies depending on the work that you do but some examples include business insurance and public liability insurance. Business insurance works in the same way as home insurance and covers your property and its contents for things in relation to your business that your standard home insurance policy doesn't cover. Public liability insurance covers you if someone sues your business for injury or damage to property. More information on the types of insurance you need for a business can be found in our articles, 'The 9 insurance policies you need to protect your business' and 'What insurance do I need to be self-employed?'.
Buying home insurance that covers working from home
One of the quickest and easiest ways to buy a home insurance policy is via a comparison site. Comparison sites allow you to easily compare multiple home insurance policies at once to find the best deal. We have partnered with Quotezone* so that you can search and compare quotes from over 40 UK home insurance providers. One thing to consider when comparing quotes, however, is that not all comparison sites are whole of market, which means you can sometimes get a better deal elsewhere or directly with the insurer. As with all insurance products read the policy documents carefully to ensure you are getting the right cover for your requirements.
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