What If Your Insurance Claim Involves Home Business Property?

More and more, people across this country have transitioned to working from home. While this trend has been well underway for a decade, the COVID-19 pandemic has changed the way that many people approach work. Not only are self-employed individuals working from home, but many regular employees will now be allowed to continue operating from a home office. However, will your work and home office equipment be covered in the event you make a claim with your homeowner’s insurance policy due to a disaster?  

Figure out what your policy already covers 

Most people probably do not know every aspect of their standard homeowner’s insurance policy. The policy may cover some aspects of your home-based business, but it may be the case that you need to purchase additional insurance in case a disaster strikes and damages property. First, before you purchase any supplemental insurance, review your homeowner’s insurance policy to determine whether there are any home business-related exclusions. 

You may find that your homeowner’s insurance policy does provide limited coverage related to your business property, though it may not be enough to cover a total loss. Many homeowner’s insurance policies have the following home-based office exclusions:

• No coverage for data loss 
• Limited covered for business equipment within your home (usually up to $2,500)
• No coverage for loss of income if you cannot run your business 
• No coverage for injured employees on your home or property 
• No coverage for business records 

Those who work from home in New Orleans could end up being surprised in the aftermath of a disaster when their homeowner’s insurance carrier denies their claim for business-related damaged property. While you may initially think the insurance, company is operating in bad faith, it may be the case that your business property was excluded. But you need to be certain.

Let our team help today

Now is the time to prep for disaster. At Insurance Claim HQ, we can help you review your policy. If your home has been damaged and you are struggling to get coverage for your business-related property damages, you can contact our New Orleans bad faith insurance attorney for a free consultation of your case so we can discuss your next steps forward today.