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American Insurance NW Inc. Blog

All You Ever Wanted to Know About Insurance

Homeowners - Beware of Business Exclusions

A home-based business may void all coverage on your garage/shop.

If you have a “home-based” business - even if part-time - at your home residence premises, there are serious insurance coverage issues that need to be addressed. You could lose the entire value of a detached garage or shop building to a fire or have a liability claim that is denied for coverage due to the business exclusions in the typical Homeowners policy.

“Our biggest worry is that a customer will start running a business out of their detached garage/shop without knowing that their homeowner’s policy excludes all coverage on that building”, said Shawn Sullivan, CIC. “Remember to call us if you have a home-based business so we can provide the additional property and liability protections you need.”

All Homeowners policy forms contain business exclusions in the property, liability, and medical payments sections. The business exclusions are necessary to restrict the scope of coverage to normal personal activities. Otherwise, the pricing of all Homeowners policies would be affected by claims paid on an endless variety of business activities.

If you have a home-based business you need answers to the following questions. Click on each question to read the policy wording and explanations for the most common Homeowners insurance policy.

Do you have any other questions? Contact us online here or email or call us at (208) 746-9646 today!

Depositphotos_41853449_s-2015.jpgDo you need a quote for business insurance? You can request a business quote online here or call us at (208) 746-9646 today or email "" <mailto:American [at] am-ins [dot] com> to contact an agent to help you with that quote!