While it is true that most homeowner’s insurance policies cover all your personal belongings, no matter where they are in the world, most policies exclude certain items. The insurance industry believes that everything should be insured under the correct type of policy. For this reason, your car and your home each need their own insurance policy.
Each is excluded under the other policy. In the same way, the insurance industry expects business computers and other business equipment to be insured on a business insurance policy. Often, business computers and other business equipment are excluded from coverage under the homeowner’s insurance policy. If business equipment is excluded, then everything you have done in order to get a tax benefit from owning the computer for business use works against your being able to collect for it on your homeowner’s insurance.
So how can you tell if your business computer or other business equipment is excluded from coverage on your homeowner’s insurance policy? Read your homeowner’s insurance policy carefully. Especially read the exclusions under your policy’s section on your covered property. Look for the terms “business,” “business equipment,” “computers,” and other related terms. It is not possible to list here the coverages under every company’s insurance policies. Each company writes a slightly different policy, and each state has its own regulations. Read More