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Does homeowners insurance cover business property?

On Behalf of | Aug 8, 2023 | Business Law |

As an entrepreneur, you understand the importance of protecting your investments and using insurance to ensure the continuance of your livelihood. Insurance is itself a significant investment, though, which is why you might consider using an existing homeowners insurance policy to protect your business assets.

Homeowners insurance primarily serves to cover damages to your home, property or any personal belongings within the home. As a budget-conscious business owner, the question may cross your mind as to whether or not this type of insurance policy extends to business property.

When does homeowners insurance cover business property?

A standard homeowners insurance policy may provide some coverage for business property stored in your home. Based on the policy, this coverage may cover more aspects of your business if you operate your enterprise out of your home. Different homeowners insurance policies can vary, though, and some might not provide coverage for business property or might have higher coverage limits that make it difficult for you to protect business assets.

What other options are there for protecting business property?

While a homeowners insurance policy can accomplish much for small business owners, particularly those operating out of their homes, a more dedicated coverage option may be necessary in some cases. Business property insurance or small business insurance policies may cover a wider variety of unexpected claims you might have to make regarding your enterprise, such as those concerning theft, fire damage, lost income or replacements of inventory or other business assets.

Many homeowners insurance policies will cover damage or replacements of business property kept on residential property. For more comprehensive coverage of business assets, it may be preferable to opt for specialized business property insurance.