Original video by Ron Marchiani. Watch on YouTube.
Video guide · Ron Marchiani, Farmers agent
Home business insurance: what a homeowners policy may leave out
Ron’s video warns that using a home for business can change the insurance questions. Equipment, inventory, customer or employee injuries, childcare, deliveries and detached structures may need a separate coverage review.
Video notes
What Ron covers
Ron’s video warns that using a home for business can change the insurance questions. Equipment, inventory, customer or employee injuries, childcare, deliveries and detached structures may need a separate coverage review.
A residence policy may not cover every business exposure
TDI says a home policy may not cover all business equipment or injuries to employees and customers. Business interruption, customer data, deliveries and employees may call for separate or additional coverage depending on the work and policy.
Tell the insurer how the property is used
Describe the activity, equipment and inventory, customer visits, employees, deliveries, and any space rented to others. TDI also advises asking about coverage if a detached structure on the property is used for business.
Get the proposed terms in writing
Ask which policy or endorsement responds to each exposure, what exclusions and limits apply, and whether separate business coverage is appropriate. Do this before relying on a homeowners policy for business activity.
Read the video transcript
Prepared from the video’s YouTube English caption track and lightly edited for punctuation and readability. Speaker-name recognition errors are standardized to Ron Marchiani. Consult the linked video for exact spoken wording.
It's often common today for people to work from home. Do you work from your home? Your homeowner's insurance may not cover your business the way you think. Many homeowners don't realize that business-related activities can have coverage limitations. That can be different. So, whether you run a business from home, provide like a child care, or rent out a detached structure, your policy may leave unexpected coverage gaps. That's because the basic homeowner's insurance is designed to protect just your residence, not every way you use your residence. So, the problem is many people don't discover these limitations until they file a claim. If your home is also part of your business, review your coverages before you end up needing them. I'm Ron Marchiani with Farmers Insurance, delivering you expertise beyond the policies. Follow me for more insurance tips and industry insights.
These notes summarize the linked public video alongside Texas Department of Insurance guidance. They are general education, not a determination of coverage. The issued policy controls.
Related official guidance
Quick answers
Common questions
Does homeowners insurance cover a business operated from home?
It may not cover all business equipment or injuries involving employees and customers. Coverage varies; tell the insurer what the business does and ask what must be added or insured separately.
Can a detached garage or shed used by a business be covered?
A home policy may cover other structures, but business use can change the coverage question. TDI advises asking the insurer whether the structure needs separate insurance or extra coverage.
What information should I give an insurer about a home business?
Describe the work, equipment and inventory, customer visits, employees, deliveries and any rented areas. Ask about property, liability, business interruption and vehicle use that may apply.