Home insurance when working at home

[MobileTechie]

I'm based in the UK and I've noticed that ever since I mentioned to insurers that I work from home my home contents insurance has risen by a factor of 4.

I already insure my home office which includes equipment, customer's kit, liability etc. So everything is covered. Me working from home means my property is occupied during the day. Yet for some reason insurers seem to believe I now have four times the risk than I did before.

Anyone got around this anyhow?

 

[Kitten Kong]

Your lucky, you could actually get insurance!. When I rang my insurance co up, they stated that because I work from home, and the workshop is on my premises, they would not insure me in any shape or form. Due to the fact, that clients could injure themselves on the way to the workshop; and or clients could enter the house, and 'take things' their words. Even though I have 2 dogs who are always in the garden. ( I put them in the house, when a client is at the gate).

But like you, I have a seperate business insurance, which covers accidents, whilst on my premises.

 

[MobileTechie]

Your lucky, you could actually get insurance!. When I rang my insurance co up, they stated that because I work from home, and the workshop is on my premises, they would not insure me in any shape or form. Due to the fact, that clients could injure themselves on the way to the workshop; and or clients could enter the house, and 'take things' their words. Even though I have 2 dogs who are always in the garden. ( I put them in the house, when a client is at the gate).

But like you, I have a seperate business insurance, which covers accidents, whilst on my premises.

So you don't have home insurance then? I don't even really have clients coming to the house so I don't understand what I'm being asked to insure against.

 

[TLE]

I have both home insurance and business insurance. I don't think I was ever asked if I run a business when I was sorting out my home insurance. I am sure they knew as both my business insurance and home insurance were with the same company. This isn't the case now as I have moved my business insurance.

Like you MT, I don't have clients calling at my home, it's just somthing I don't allow and I make it very clear.

 

[Xander]

I have both home insurance and business insurance. I don't think I was ever asked if I run a business when I was sorting out my home insurance. I am sure they knew as both my business insurance and home insurance were with the same company. This isn't the case now as I have moved my business insurance.

Like you MT, I don't have clients calling at my home, it's just somthing I don't allow and I make it very clear.

Same here. I'm running a business so I have business insurance. Whether I'm working on a computer on-site or on my workbench, I'm covered. I pay a little over $100/mo for it.

 

[JBCOMPU]

Home Insurance??

How is that? I work part time at home fixing computer, why do I need to have insurance? I fix about 4 computer a month, why should I get insurance??? I'm just trying to make a little side money... Trying to get afloat you know, too many expenses.....

 

[1aComputerServices]

Here in the states, my insurance company offered an "incidental business" rider on my homeowners policy to cover anyone in and out of my basement. I actually changed over to a business policy now... Think that rider was like $30 a year.

 

[Kitten Kong]

So you don't have home insurance then? I don't even really have clients coming to the house so I don't understand what I'm being asked to insure against.

Sorry my bad. I have home insurance, which covers the house - (contents, and accidental damage), and sheds, (contents only).

It does not cover the garage (workshop). What I meant is, if a client should have a accident in my garden coming down to the workshop, then I would have to claim on the bus insurance, and not the home insurance.

The workshop is covered for liability, contents, clients pc's etc. If a client 'should' gain access to the house, and remove anything during a working day, whilst im in the workshop, then again its a claim on the bus insurance, and not the house insurance..

weird way of working things out, thats for sure..

 

[MobileTechie]

Sorry my bad. I have home insurance, which covers the house - (contents, and accidental damage), and sheds, (contents only).

It does not cover the garage (workshop). What I meant is, if a client should have a accident in my garden coming down to the workshop, then I would have to claim on the bus insurance, and not the home insurance.

The workshop is covered for liability, contents, clients pc's etc. If a client 'should' gain access to the house, and remove anything during a working day, whilst im in the workshop, then again its a claim on the bus insurance, and not the house insurance..

weird way of working things out, thats for sure..

I've been asking insurers and unless the home-office/workshop is a separate building then none of them will even off home contents cover - well only one firm will. I guess they think it will attract thieves or increase fire risk.

 

[MobileTechie]

I have both home insurance and business insurance. I don't think I was ever asked if I run a business when I was sorting out my home insurance. I am sure they knew as both my business insurance and home insurance were with the same company. This isn't the case now as I have moved my business insurance.

Like you MT, I don't have clients calling at my home, it's just somthing I don't allow and I make it very clear.

So who do you use then TLE? I'd be interested to know because I don't fancy paying out 4x the amount for my contents insurance when my office / workshop is already insured on its own.

The crucial distinction they make is whether the business is only clerical or not. If it's just paperwork the home insurers don't mind, as long as you don't have business visitors. However if you work on customer machines or do h/w work then they won't cover you. Clearly in the event of a major burglary or fire they are likely to discover the truth.

 

[TLE]

So who do you use then TLE? I'd be interested to know because I don't fancy paying out 4x the amount for my contents insurance when my office / workshop is already insured on its own.

The crucial distinction they make is whether the business is only clerical or not. If it's just paperwork the home insurers don't mind, as long as you don't have business visitors. However if you work on customer machines or do h/w work then they won't cover you. Clearly in the event of a major burglary or fire they are likely to discover the truth.

I have my business insurance with Hiscox which was arranged through Simply Business, my home insurance is with Direct Line.

I do not ever remember been asked if I use the house for business purposes. You have started alarm bells ringing now so I am going to have to check it out. I can see there logic in that your home is more of a target if you potentially have numerous computers at your home.

 

[Kitten Kong]

Our home insurance is with Swinton. The bus insurance is with Hiscox also. I think the main difference with me, is that I do have a seperate locked location, where I work on clients machines, rather than in the house. No clients machine, is stored in there, nor do I do any clerical work in the house.

In fact, I don't even let a client in the house. Never have done, to me, thats our personal domain, and not for clients to enter willy nilly so to speak. Also our dogs, wouldnt let them in, well they would let em in, but wouldnt let em out .

With Molly, n Harry in the garden all day, and the back door open to the house, its the only way I can hear a client is at the door/gate. As I cannot get a door bell to work down here. Tried a wireless bell, with a range of 50m. This only gets as far as the back shed. The only other option, is to hardwire a bell, along side the ethernet, and telephone down here. Something I may look into next year.

When I hear them barking, I know a client is at the door, then I will go up to the house, put Mo n H in the house, and then see to the client.

 

[Martyn]

I've been asking insurers and unless the home-office/workshop is a separate building then none of them will even off home contents cover - well only one firm will. I guess they think it will attract thieves or increase fire risk.

So you can get buildings but not contents?

 

[MobileTechie]

I have my business insurance with Hiscox which was arranged through Simply Business, my home insurance is with Direct Line.

I do not ever remember been asked if I use the house for business purposes. You have started alarm bells ringing now so I am going to have to check it out. I can see there logic in that your home is more of a target if you potentially have numerous computers at your home.

I tried Direct Line and they have a list of Assumptions that they make which you sign up to, on that list is that the home is not being used for non-clerical business.

 

[MobileTechie]

So you can get buildings but not contents?

I just checked and it invalidates buildings insurance too. Effectively 99% of insurers will not insure your home or its contents if you have even as much as £100 worth of "stock" or client equipment. That would include having some sticks of RAM and a few disks in a box in a bedroom. It makes no difference if work is carried out in your garage or workshop or converted room - if it's part of the property then they won't insure.

It's totally ridiculous.

 

[TLE]

Do you have home and contents insureance then MT? I am interested to know what covers what? Who do you use for your home and contents insurance.

Looks like I may need to look into this further. They really don't make it easy in this country.

 

[Martyn]

I just checked and it invalidates buildings insurance too. Effectively 99% of insurers will not insure your home or its contents if you have even as much as £100 worth of "stock" or client equipment. That would include having some sticks of RAM and a few disks in a box in a bedroom. It makes no difference if work is carried out in your garage or workshop or converted room - if it's part of the property then they won't insure.

It's totally ridiculous.

Well I might as well cancel my home and contents insurance if it's invalid

Maybe there should be a cap on a claim? I mean I might only ever have a max of 3 pcs in for repair and others maybe system building and have 20 computers. It doesn't seem fair to lump the lot together.

 

[MM PC Solutions]

I'm based at home. My insurers (Churchill) are aware of this & my premium did not go up a stupid amount when I declared this to them.

 

[MobileTechie]

Well I might as well cancel my home and contents insurance if it's invalid

Maybe there should be a cap on a claim? I mean I might only ever have a max of 3 pcs in for repair and others maybe system building and have 20 computers. It doesn't seem fair to lump the lot together.

Well it's not even about covering those items. They wouldn't be covered anyway. For some reason it just invalidates the rest of the home insurance. It's as if having this "stock" at home causes a massive increase in risk to you buildings and its contents.

 

[MobileTechie]

I'm based at home. My insurers (Churchill) are aware of this & my premium did not go up a stupid amount when I declared this to them.

I would check to make sure they are really aware you have stock and client equipment at the premises. Because when I spoke to them, they would not offer any insurance at all.

Their Assumptions include: "Is not used for business purposes other than paperwork, telephone calls, child minding and computer work."

Computer work only covers using a computer and not fixing client units or holding stock or tools to do this.