What type of insurance would cover a property that is both used for residential and business purposes? Is it the same product businesses get when their primary location is in the home of the owner? These are just some of the questions that may be going through the minds of businessmen who just happen to use their homes as their business address as well.
An ordinary home insurance is not fit for the purpose of the insured in this situation. Homeowners cum businessmen will find out that regular home insurance policies will not cover the specific needs of a property that is also used for business purposes. It would be ideal to look into all possible options such as those offered in http://homeownersinsurance.com/homeowners-insurance-quotes.php.
For an insurance policy to be useful, it needs to include coverage for risks that are specific to the nature of the use of the property. It is a common mistake among homeowners to presume that their businesses located in their homes will be covered by their existing home insurance policy. What the insured may not know is that he or she is actually violating the provisions of the policy by not declaring that a home also functions as a business area which could effectively void the policy.
For purposes of defining what constitutes doing business in a home in the eyes of insurance companies, a home business can be defined as any activity where money is accepted in return for goods or services rendered. Having a business name or a signage to indicate such business is not necessary to be categorized as a home business. The determination will be based on the actual use of the property.
If the existing homeowner policy does not cover a home business, it is necessary to find one which will. There are actually a number of ways to go about it. If the business is housed in a separate building from the residential home although located in the said property, homeowners can opt to get two separate policies that will cover each risk and need. Both forms of insurance will cover for the building, contents, and liability related to each. A business insurance may also provide coverage for business continuity.
Another option is to insure the home for a business insurance policy to also cover business property and liability coverage and then cover personal property trough a renter’s insurance. If an insurance company says a home insurance policy they are offering will still cover the building in spite of the fact that a business is being conducted in the same property, it is necessary for the insured to ensure that the inclusion is written in the policy or has been acknowledged in writing by the insurance company.
About the Author
Teresa is a researcher-writer who covers a wide range of informational topics.
Image: theworkinghouse.net
April 28th, 2013 
