Many people operate small (and sometimes even quite large) businesses out of their homes. The standard homeowners insurance policy provides a little bit of coverage, but it’s probably NOT the best way to cover your home based business. Here’s a few key limitations that demonstrates why a standard homeowners policy is a poor choice for home based businesses.

Other Structures

The standard homeowners policy covers detached garages and other structures on your property automatically (subject to limits), however there is NO coverage for those structures if they are used to operate the business.

Business Personal Property

The “stuff” your business owns (or that you own and use for business purposes) is also limited by the standard homeowners policy. Generally, business property is limited to $2,500 on premises and $500 off premises. That’s not much coverage considering the cost of a simple laptop alone. Also, any merchandise held for sale is generally not covered at all.


Generally speaking, the typical homeowners policy provides NO liability coverage for anything arising our of business use. This exclusion applies even if your business is NOT located in your home: if a customer swings by your place to pick something business related up and is injured on your property, there would be no liability coverage under your homeowners policy.


There are a number of possible solutions. It is sometimes possible to endorse (modify) the homeowners policy to provide some additional (still fairly limited) coverage for business property and liability. The best solution would be to get a home based business policy, a businessowners policy or separate commercial property and commercial liability policies depending on your unique situation.

Not sure if your business is covered properly? Give us a call.


About David Dempsey Insurance Agency

Founded in 1984 by David Dempsey, David Dempsey Insurance Agency serves Rome, GA, Floyd County Georgia, metro Atlanta and surrounding area. Focusing on insurance for families and individuals, we don't provide quotes - we provide auto and home solutions for our fellow community members. We also specialize in insuring retail businesses, restaurants, health clubs and child care / home care centers.