Its all over the news, a number of direct insurers have declined claims as people were operating businesses from their homes.
Given the fact that the number of people who are operating some kind of business from home has significantly incresed we thought it may be helpful if we outline some of the thinking underwriters and insurers have around this subject.
Caveat: always ask your specific underwriter or insurer or broker what their terms & conditions are on the subject before making any decision.
DISCLOSURE
You would be obliged in one way or another to tell your insurer if you start or intend to start to operate a business.
DEFINITION
In the current business environment, the distinction between home and business have become more blurred. Unless it isyour(i.e. the insured’s) business and it is primarily run from the home, most insurers do not treat this as “conducting business from home”.
For example, if you work from home a few days a week, or do incidental paperwork at home for a business that performs the majority of its activities elsewhere, then msot insurers do not consider this to be a business run from the home.
If, however, you are running a business from your home premises, then you need to disclose this, regardless of the size or nature of the business.
Insurance brokers in the Australia offer their clients a range of benefits that are not available when you buy insurance directly from an insurance company.
Here are 7 good reasons to use an insurance broker:
1. If you have a complex life situation such as mortgages or investment properties, then it will be important that you get proper advice when choosing your home contents insurance policy. If you buy your home contents insurance through a bank, they generally will not offer sufficient cover if something was to happen like theft of damage caused by fire or flood. You could be left without adequate coverage in these situations.
2. Insurance brokers do not just sell one product, they assess your needs and then look for the best solution for you and your family. Finding the most appropriate product is as important as finding the best deal. Insurance brokers are fully trained with the knowledge and expertise needed to find you a product that is right for your personal insurance needs.
3. Insurance brokers know the difference between what different types of policies provide as this information can vary depending on who exactly the insured is. For example, some policies offer storm damage cover in the event of a cyclone or tornado whereas others do not.
4. Insurance brokers work with an array of different insurers which allows them to get first hand knowledge on what they have to offer and depending on what type of policy you’re looking for, this can be a real benefit. They will know who has something suitable especially if it’s not normal or a bit different.
5. Insurance brokers can advise you on the best time to change your home contents insurance policy so that it suits what is important for your circumstances. If you are buying a house, upgrading or renovating your existing property, going overseas temporarily or permanently, changing jobs or getting married etc., then your risk will have changed and therefore so could your home contents insurance policy.
6. Comparing policies from different insurance companies takes time and effort plus sometimes involves dealing with the insurers directly when it comes to questions about their products. There are many other important things in life than just finding an appropriate home contents insurance policy; most people would rather spend their free time doing more enjoyable activities. Since an insurance broker works with multiple insurers there is no need for you to waste valuable time and energy comparing products. You can leave it all to your insurance broker and they will find the best solution for you.
7. Insurance brokers provide lots of useful information on home contents as well as any related areas such as tenant’s insurance, landlord’s insurance etc. They’ll be able to call upon their connections with other companies like legal advisors, accountants and solicitors should there be anything specific you need to know about home ownership and renting out property.
