Add an Endorsement to a Homeowners Policy for a Home Business
Whether you are an accountant, masseur or Internet auction entrepreneur, your home business is likely not effectively covered by your existing homeowners insurance policy. Luckily, if your business doesn't give rise to a risk of liability and has low overhead costs, you may be able to add an endorsement to your homeowners policy that will cover your home business for only a few dollars a month. "Endorsement" simply means "add-on."
Instructions
1. Review your home business operations. Note whether or not you store inventory for your home business. This will help you determine whether an endorsement will sufficiently cover you for business equipment and inventory.
2. Compare the income you derive from your home business to the amount of income you make overall. This will aid you in deciding whether an endorsement will provide you with enough coverage to keep paying your bills should a disaster befall your home business.
3. Review your existing homeowners policy carefully for personal property coverage and limits. Many times endorsements for home business coverage will be written to provide those same coverage areas and limits to your business property. Review your business records to ensure that this is sufficient.
4. Gather your business records. Review your inventory lists, business equipment lists, income statements and any employee records to help determine whether you will need home business liability endorsement coverage, health endorsements or business equipment insurance.
5. Contact your homeowners insurance policy agent to discuss the various home business endorsements available. Bring all of the business paperwork you have created with you so that you can speak with the agent in concrete terms to get specific price quotes for different endorsements.
6. Ask your homeowners policy agent to add all of the endorsements you have chosen to your existing policy. Confirm the increased cost of your premium and the total coverages for both your personal and business liability before signing the expanded policy.
