the insurance on your home is not designed to cover business
activities, you can jeopardize your coverage by conducting
any sort of commercial venture there. Your homeowners policy
contemplates that you’re going to use your dwelling
“primarily as a private residence,” although you’d
probably get by with minding the neighbors’ children
now and then for a fee or with using your den to write a book
in your spare time.
elaborate business operations may require special coverage,
and you can get that by adding an inexpensive endorsement
to your homeowners policy. The endorsement is intended for
professional people, such as doctors, dentists, lawyers and
accountants, who have their offices in their homes, or for
anyone who operates a private school or a studio at home.
If you conduct such activities in your house, talk to your
insurance representative about the endorsement. The loss to
you in case the office burns could be devastating without
example, there was the case of the Virginia resident who operated
a recording studio in his home, where he had about $100,000
of equipment for business purposes. He should have taken out
a commercial policy.
business use of your home - even to give dancing
or music lessons - could affect not only the insurance on
your dwelling, but the coverage of your personal belongings
and your liability to others. If you plan to use your home
for any such purpose, the sensible approach is to talk with
your insurance representative about it in advance to make
certain you won’t forfeit any of your insurance protection.
Don’t forget; they’re your dollars. Make sure
they buy the right protection.
means any trade, profession or occupation.
activity is any agreement, contract, transaction or other
interaction that advances your occupation. These terms are
important because, in most cases, homeowners policies limit
coverage for businesses and business activities.
a standard policy, business-related property is insured
up to a few thousand dollars. Business-related liability is
more complicated issue. Liability coverage for business-related
activities is strictly limited. Any significant business exposure
should be covered under a separate commercial policy.
note that the precise coverage afforded is subject to the
terms, conditions, and exclusions of the policy as issued.
This explanation is intended only as a guideline. This information
is not intended to be considered investment, tax or legal
advice. It is provided, for your education only. This is not
an insurance contract. All terms and coverages are defined
solely by your policy.
more details, please call a PaulBalep representative toll
free 1-800-964-8614 to receive a free, no-obligation
quote. Like so many satisfied clients, we think you’ll
be happy you did. And to set up a meeting to discuss additional
insurance and financial goals: Visit us online at www.paulbalep.com,
or e-mail us at firstname.lastname@example.org.
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is number one>>. We are nonexclusive producers who represent
an average of eight companies-not just one. PaulBalep
can evaluate and compare the products of several fine companies
to find you the right combination of coverage and value.