How does home working affect home insurance?
A home insurance policy usually covers items in your home such as your clothes, furniture and electrical appliances against theft and damage. However, not all policies give you the cover you need to work from home.
“Home insurance policies generally exclude working from home, unless that work is of a clerical nature,” says Phil Thorpe, Director at S-Tech Insurance Services. “If you usually work in an office on a laptop or computer and are now doing this work from home, it would be classed as ‘clerical’. However, we still recommend you contact your home insurer, just to make sure.”
“For anything more than clerical work, you do need to talk to your insurer to find out if there is anything specific you need covered. You’ll also have to contact them if you will be receiving any business visitors to your home as this can affect your cover too. Your insurer or broker will be able to advise you on any amendments to your policy if this is the case.”
In recognition of the change to our working habits, the Association of British Insurers (ABI) has made a commitment that says “if you are an office-based worker and are working from home as a result of the pandemic, your home insurance cover will not be affected.” This pledge is valid until at least 31st December 2020. Not all insurers are members of the ABI though, so it’s always best to check with your own insurance provider.
If you intend to continue working from home regularly (i.e. once a week or more) after the pandemic you must inform your insurer. If you don’t and need to make a claim, your settlement could be affected or your insurer may decline to deal with it.