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Homeowners Insurance and Working from Home

According to Randon Morris, working from home has lots of benefits, like working at your own pace with less pressure.

But the question is, will a remote work affect the homeowner’s insurance?

Let us look at the different analyses that will throw more light on the issue.

When you work remotely, your house insurance may be affected depending on the magnitude of the remote work.

If you’re the sole owner of the firm, your company is not protected by your primary house insurance policies. You need to include additional coverage to your existing insurance.

But once you are a remote worker(fulltime), you’re likely to get coverages on losses relating to businesses. According to Randon Morris, this, however, has its limits. Therefore, it is advisable to consult your insurance officers on the magnitude of your house insurance policies. Discuss your remote employment contract with your firm’s management board.

Questions to ask yourself before getting an insurance

  • Did they employ you as a work-at-home staff in your firm?
  • Are you equipped with devices from work that are used by you every day?
  • Do you own house/tenant insurance?
  • Are the house insurance covering remote employment?

Will the house policy coverage extend to damaged business Tools?

You need house insurance to protect your private properties. This doesn’t fully cover remote work liabilities. But if you make use of company tools while working from home, the house insurance gives limited compensation, says Randon Morris.

There is some ideal house coverage that extends to the laptops owned by businesses. There are limits, though. Damages of business devices that occur at the house are reimbursed with certain amounts of money. Outside the house, like in cafes, or parks, you get some compensation too.

If a firm’s device gets damaged or lost by you, the boss covers the damage using their insurance schemes. Whereas, any private device stolen will have house policies covering it.

What are the differences between an employed worker and a stand-alone contractor?

A stand-alone contractor is different from an employed worker. The two of them have different insurance protections. The main differences are listed below:

  • Contractors who work independently are not covered by homeowners’ insurance. On the other hand, employees who are working from home full time have limited insurance.

For contractors who work independently, they must include each business endorsement to the homeowner insurance plan they subscribed to. Then they can be eligible to get a business insurance policy.

If any liability or damage occurs while doing a job from home, the insured cannot use his renter’s insurance policy.

Full-time remote workers

These types of workers must be given their work tools. Their organization should be the ones to provide them with these tools. This will make their work easier and faster. The company must also provide insurance for remote work injuries. It doesn’t matter where they are, so far, they got injured while on the job.

Insurance for contractors who work independently

It is the sole responsibility of these workers to purchase their insurance to cover themselves. Any liability or damage incurred while working from home is the responsibility of the contractor.

Renter’s insurance for work-from-home employees

Renter’s is almost the same as homeowner’s insurance. However, a renter’s policy is limited. It doesn’t cover structures owned by the insured nor extend to any work-related damages. Remote workers may choose home insurance instead. However, if you already have a renter’s insurance, talk to your insurance firm about other plans. You can also ask your place of work about how to get insurance for work equipment.

Filling insurance forms by remote workers

  • Remote employees who work full time should first ask about their company’s insurance plan and what it covers. You can ask your superior about what work-related liabilities are and the insurance that covers those. Before you sign a full-time work contract with any company, carefully read their insurance policies on the contract.
  • Contractors who work independently can add an endorsement to their homeowners’ insurance policy. This type of policy protects their contractors and their work tools.

The type of endorsement they can add include:

1. Home-business insurance policy:

This policy is created to cover the business and the homeowner against any future loss. A home-business policy protects the worker’s work equipment. Furthermore, it protects the worker against any work-related injuries.

2. Insurance plan for business properties:

This policy is for those who have expensive work tools. It can be added to the homeowner’s insurance plan. When you do this, the amount you get as compensation is higher than when you don’t have insurance for business properties.

Things that can be covered by extended insurance are:

1. Tools used to work from home:

These are the work equipment a worker uses to work from home. They are; laptops, work tables, and so on. Any tools that you use while working can be insured.

2. Work injuries:

You’re eligible for coverage if you got injured while working.

3. Properties:

Insurance coverage for personal property damage is not extensive. So do not expect full coverage on this, even if the damage occurs while on the job, says Randon Morris.


Working from home has its advantages. However, when it comes to an insurance policy, this might be disadvantageous if you are an independent contractor. The benefits you may get as an independent contractor are limited compared to those who go to work.

Similarly, for those who work remotely, things are not as simple as they seem to be. While you work diligently for your employer, never forget to have your best interest at heart. Therefore, carefully check out your company’s insurance policy before you sign up.

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