coronavirus pandemic

Does Your Home Insurance Cover Working From Home?

NBC 7 Responds looked at why some insurance policies might leave you out of luck if disaster strikes

Months into the pandemic working and learning from home is the new normal. Consumer Reports has ideas to help you set up work spaces for the long haul.
Consumer Reports

Working from home was a temporary situation because of the coronavirus pandemic. Now, it seems many people may work from home for the foreseeable future. That means some valuable work equipment is sitting in your home.

"People are asking if it's covered under home insurance or not," said Stephen Kates, an analyst at "In a lot of cases, business equipment has a limitation on it."

Whether it's a work computer, a printer, a desk, try to think about how much it is worth. Most home insurance policies have a limit as to how much they'll pay for electronics.

"If your equipment is worth more than about $2,500 you may need a separate carve out specifically for those things," said Kates.

It's not just about having equipment at your home. Kates says if you are conducting business out of your home as well you might need to check your policy.

"If you have significant foot traffic coming to your home out of the ordinary from your pre-pandemic home life, then you should reevaluate," said Kates. "Talk to both your employer and your personal insurance company about what that increased liability may require for coverage."

If you've put it off, now is the time to talk to your insurance agent to see if you're protected by your current policy.

"Homeowners policies are designed for personal property, not business property, so they tend to have limitations," said State Farm Agent Walt Waggener. "Some policies have no coverage at all for business property at home, so you really want to find out if that applies to you."

Kates says adjusting your home insurance might cost a little more, but it's worth it in the long run. He also recommends talking to your employer if you find out you need more coverage.

"If you have to buy extra insurance yourself, is that something you have to bear the cost of or does your employer contribute," said Kates. "If you don't have the coverage, it's going to be far worse than paying a few extra dollars every month to make sure that you're fully insured."

There are some ways to save money on insurance though. Waggener says since so many people are staying at home, it may be possible to save money on car insurance.

"We could go into the policy and make a change indicating the new correct use of the car and probably reduce the rate," said Waggener. "It depends on just how much you're paying for the policy to begin with. It tends to be significant if you have full coverage on a nicer car."

Both Waggener and Kates say it's important to talk to your insurance provider and update them, so you, your family, and your work are protected.

"Absolutely reach out to your insurance company and tell them how much has changed," said Kates.

Contact Us