Most people assume their home business or money making hobby is covered by their homeowners policy – it’s not. Two out of every three people who have a business or hobby out of their home do NOT have adequate insurance protection. Homeowners policies are not designed to cover losses from the business.
Consider the following that may not be covered by a homeowners of renters insurance policy:
- A DJ at a birthday party has $4,500 of sound equipment stolen.
- A photographer forgets to use the flash and misses most of the pictures at the wedding reception. The bride and groom sue the photographer for $15,000.
- A representative for Pampered Chef has $2,700 of inventory in their home. The inventory is destroyed when a fire damaged the home.
- A teacher tutors children in math throughout the year. A student trips and falls at the teacher’s home resulting in injuries. The parents sue the teacher for $42,000.
- A person sells crafts at regional craft shows throughout the year. An attendee has $10,000 in injuries and the person in the next booth has $3,500 in damaged inventory.
- A fitness trainer needs to show proof of liability coverage to be able to teach Zumba classes at a local recreation center.