Why You Should Have Renters Insurance for Your Home-Based Business

Half of all U.S. businesses are home-based, a total of about 15 million. Remote work is becoming the norm, and more businesses are home-based than ever before. For home-based business owners, personal property such as cellphones and computers are often used for business needs as well. If you own a home-based business, it’s important to protect your personal property in case of damage, loss, or theft. Renters insurance can help. Here’s what you need to know about renters insurance and why it could be helpful for you as a business owner.

What is Renters Insurance?

Renters insurance protects people who live in rented homes in case of damage to their home or property and also provides liability protection in case someone was to be injured at your home. Renters insurance even protects your personal property if you’re not at home--for instance, if your personal computer is stolen at a coffee shop or out of your car, your renters insurance will reimburse you so you can get a new one.

Renters insurance policies vary in the amount of coverage they offer, and most policies are customizable so you can get however much protection you feel you need. Most policies start at $10,000 in personal property protection. Our partner, Lemonade, provides between $10,000 and $250,000 in personal property protection.

Why Is Renters Insurance Helpful for Freelancers and Home-Based Businesses?

If you use personal devices for your work, such as a computer for freelance work or a cellphone for rideshare driving, renters insurance is a good investment for you. Renters insurance doesn’t cover property that belongs exclusively to a business, but it will cover personal property that you also use for your work. If your computer is stolen and you need to be able to run your business, you may be able to make a claim on your renters insurance to get a new one.

Renters insurance also provides coverage if your home becomes unlivable (for example, if a pipe bursts and causes flooding), and you need to stay somewhere else while it is repaired. For many freelancers, not having a home base means not being able to work. Having renters insurance to cover your hotel or temporary rental would give you the security to keep your business up even if you have to leave your home.

How Much Does Renters Insurance Cost?

Renters insurance policies vary based on the amount of coverage you choose. Most start around $10 a month. Our partner insurance broker, Lemonade, offers policies starting as low as $5 a month; premiums increase from there based on coverage amounts. You can experiment on the Lemonade website with different coverage options to see what your premium would be.

Conclusion: Renters Insurance is Worth the Investment

For the price of a latte at your local coffee shop, you can get protection for your valuable items, especially personal devices like your phone and computer.  If your business depends on your personal property, we recommend investing in renters insurance; you can get an affordable policy through our partner Lemonade. You can also set reminders for insurance and other needs on the Skip App.