If you work from home, it’s possible that you could be putting
yourself at risk by leaving some gaps in your home insurance cover.
These gaps could apply if you see clients from home, or even if you
just keep business property at home such as a laptop and
printer.
"If your current insurance no longer offers
the cover you need, there are specialist household insurance
policies that allow you to work from home."
Many mainstream home insurance policies are not designed for
people who work from home. Instead they are designed for people who
travel to a place of work each day.
However, many professionals now work from home due to the
convenience and cost savings it offers, which can be helpful when
first starting out. However, this might leave gaps in your
insurance cover.
What are the risks?
The restrictions an insurer might impose on you, if you tell
them you now work from home, will vary from one insurer to the
next. Some might refuse to continue to offer cover altogether,
whilst others might restrict certain sections of the policy.
For example if you see clients at home they may restrict or
exclude the theft section, as well as restricting cover on public
liability, which protects you if a visitor is injured at your home.
If you keep business equipment at home, this may be excluded
altogether or you may be asked to pay an additional premium.
And if you keep quiet about your working arrangements, you could
find any claim gets refused. Any change to the way you use your
property would be what insurers would call a “material fact”. This
is a fact that might influence them as to whether or not to insure
you, and if so at what premium and terms. Under an insurance
contract, you are legally obliged to advise your insurer of any
material fact as and when it arises. By not doing so, you could be
at risk of having a claim refused, even if it doesn’t relate to you
working from home.
What you should do?
If you work from home, notify your current insurer. Your
mortgage lender may also require you to notify them, or your
landlord if you rent your home. If you advise your insurer, they
will advise what terms if any will apply to your policy. If your
current insurance no longer offers the cover you need, there are
specialist household insurance policies
that allow you to work from home.