Does Homeowner's Insurance Cover Working Remotely?

Does Homeowner's Insurance Cover Working Remotely? Make sure you are aware what is covered in your insurance plan!

Your homeowners insurance will cover you when working from home, but there are exceptions.


Your homeowners insurance will cover you when working from home, but there are exceptions.


For instance, personal property used for business purposes is usually subject to much lower coverage limits than what your policy typically covers for other personal items. Business equipment coverage generally only covers up to $2,500 in losses. When used outside your home, damage to equipment may not be covered at all or have even lower coverage limits, so speak to your agent about this risk. A home policy endorsement may be helpful to increase policy limits and coverage options.


For example, imagine that an electrical fire starts in your home office and damages the computer, printer and desk you personally purchased and used for work, causing $5,000 in losses. In this case, you would only be eligible to receive up to $2,500 in insurance compensation, minus your deductible. Depending on your deductible, you may end up paying even more out-of-pocket to replace your items.


However, this situation might be different if your employer purchased the computer for you. Typically, any business equipment that is provided by your employer and is approved for home use is covered by them.


As mentioned, homeowners insurance also has limited coverage for liability when you are working from home. If clients are coming to and from your house, your home insurance policy likely will not cover accidental injuries or medical expenses. And your employer’s liability insurance policy may not extend to your home like it would cover you at the office.


But again, there are exceptions. Many business insurance policies cover remote worker liability, but employees are expected to maintain a safe working environment. If a client slipped on the snowy walkway leading up to your house that you failed to shovel, an injury claim might not be covered.


Ultimately, every insurance policy includes slightly different coverages, and some policies are more comprehensive than others. If you are a remote employee, it is a good idea to check with your HR department and your homeowners insurance company to see what coverages apply to remote employees.