Does Working From Home Impact Your Homeowners Insurance?

If your day-to-day workspace looks a lot different than it did in the past, you’re hardly alone. As of June 2020, 42% of the U.S. labor force was working from home full-time.¹ And according to consulting firm PricewaterhouseCoopers, 83% of people want to continue to work from home at least one day per week.²

With flexible workweeks becoming more popular, it’s important to understand how working from home can impact your insurance needs and who is responsible for providing coverage. According to Rebecca Stolte, Assistant Vice President at Amica Mutual Insurance, “There’s not a general, definitive rule on who is responsible, the homeowner or the employer,” says Stolte. “It all depends on the specific scenario and it’s important to understand expectations.”

Let’s look at three work-from-home scenarios and how they may impact your insurance.

Scenario One: “I’m working from home using my company’s equipment.”

“If you’re simply working from home on a company computer, it’s not typically an issue,” says Stolte. “Check with your employer and understand expectations if company-owned property is damaged in your home, particularly if you’re storing company supplies or samples at home.”

“If you’re expected to cover your company’s equipment under your personal home policy, contact your insurance provider to ensure you have adequate coverage,” advises Stolte.

Consider keeping a record of any equipment you’ve taken home from your workplace, document it with your employer, and confirm that business property is covered by your employer’s insurance when it’s in your home. Generally speaking, you don’t want to put in a claim on your homeowners policy if you don’t have to; a loss may impact the price you pay for coverage.

“If you’re expected to cover your company’s equipment under your personal home policy, contact your insurance provider to ensure you have adequate coverage,” advises Stolte.

Scenario Two: “I’m working from home using my personal equipment.”

Maybe you’ve invested in your home office – dual monitors or a standing desk, for instance. Or maybe you’re using a personal computer to perform work for your employer. Either way, make sure you’re protected if anything happens.

“If you’re working from home and using your own equipment, make sure your homeowners policy has enough coverage,” recommends Stolte. “Amica offers special computer coverage as an endorsement to any policy. It covers desktop computers and laptops, but also items like your phone or iPad.”

“If you’re working from home and using your own equipment, make sure your homeowners policy has enough coverage,” recommends Stolte.

Also consider the precautions you should take with your employer’s data on your own devices. “Most employers require using secure access points,” says Stolte. “Follow the same procedures as you would in the office to minimize the risk of a data breach.”

Scenario Three: “I’m running my own business out of my home.”

If you’ve gone from working for someone else to running your own business, it may be time to look into additional coverage – like the home business coverage provided by Amica.

“Fifty percent of small businesses are operated out of someone’s house – it’s completely different than simply working from home,” says Stolte. “Everything from the type of business you have to where you are physically working within your home impacts your coverage and liability.”

Does your business bring clients into your home? Do you have a dedicated space for your business? Is all of your equipment properly protected? “The best advice is to talk to your insurance provider,” says Stolte. “Your provider needs to understand your specific situation and then can advise on the best coverage.”

Making sure you’re covered.

Whether your work life has changed, or you’ve made changes to your home, it’s always a good idea to review your homeowners policy on a regular basis. And if you’re ever in doubt, call your insurance provider with questions.
 

• Stanford research provides a snapshot of new working-from-home economy, Stanford Institute of Economic Policy, 2020.
• It’s time to reimagine where and how work will get done, PwC’s US Remote Work Survey, 2021