In this guide
Many have continued to work from home since the Covid pandemic, with employers across the country offering flexible working policies.
However, it’s important to make sure you have the right home insurance cover in place.
In this article, we explain:
- Does working from home affect home insurance?
- Do I need to inform my insurance company if I’m working from home?
- What insurance you need to run a business from home
Does working from home affect home insurance?
In short, it depends on what you do as to whether you are covered for business use and liability.
There are certain conditions which may affect the terms of your home insurance policy, such as if you have business visitors to your home. It is important to check to see if you need extra cover.
During the pandemic, if you are carrying out office work from home, you don’t need to arrange a new policy or tell your insurance company as it is likely included in your policy.
Most office equipment should be covered up to the limit specified for single items so check your policy.
Do I need to inform my insurance company if I am working from home?
Office-based workers who will continue to work from home may not need to contact their insurer to inform them unless:
- Your business makes, sells or stores goods at your home – especially if they are valuable or involve hazardous or flammable material
- You have business visitors come to your home, for example, face to face client meetings or for services such as fitness instructor or hairdresser
- You have adapted your home for business use e.g. using a outbuilding as an office
- You have purchased new equipment that belongs to your business.
- If you have moved or are planning to move the running of your business into your home, it may be worthwhile discussing it with your provider.
NOTE: if you are employed then insurance cover for any business equipment such as a laptop will usually be the employer’s responsibility. But check first.
If you are a freelancer working from home, your home insurance policy will likely not be affected either.
- Find out more: How to become a freelancer
What insurance do I need to run a business from home?
Depending on the type of work that you do, you will have to consider existing home cover and specific business insurance:
- contents insurance – your home policy may not cover business equipment such as computers
- public liability insurance and professional indemnity insurance – if your work causes financial loss for your client, perhaps if you gave them the wrong advice
Are you one of the increasing number of people starting a business from your home due to furlough or redundancy? Check with your insurer.
“If you are setting up to run a business, depending on the type of business and equipment required, this will have implications for your home insurance cover. Check with your insurer or broker about your cover requirements.”
Richard Coleman, UK managing director of Ecclesiastical Insurance
What should I do now lockdown restrictions have been lifted?
Homeworkers should contact their home contents insurance company if they continue to work from home to make sure they are still covered.
GoCompare reports a small increase – less than 5% – in home insurance premiums since the start of 2020. However, it says insurers are unlikely to be overly concerned by more people working from home, provided they know what kind of work they are doing.
“There’s a plus for insurers: more homes being occupied during the day can help prevent claims for risks like burglary,” says Rowlands.
If you treated yourself to certain lockdown-inspired purchases, such as games consoles to entertain your children, it may be a good time to review your cover and contact your insurer.
Find out more: best home insurance
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