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Nettleton, MS 38858

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Why your home-based business needs commercial insurance

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Home-based businesses have been growing in popularity for many years. They are even more popular today. Not having to pay rent or a mortgage for your business location is one very important reason for its popularity.  At Sprout Insurance in Nettleton, MS we have a team of insurance experts who are dedicated to providing the best possible customer service. We work for our customers, and we can provide more choices since we can deal with multiple carriers.  

Why your home-based business needs commercial insurance

Property insurance

When your business is located in your home, you may believe that your home insurance provides all the protection you need. While home insurance may provide some coverage for your business, it is not designed to cover the items you need to do business. Most business property will not easily be mistaken for personal property that you would have in your home. This will leave you with inadequate coverage in the event a hazard hits. 

Liability coverage

Home insurance does have liability coverage that will protect you if you get into a situation where someone is injured at your home or by a member of your family. However, if you have the sort of business where customers or clients will visit you at your home-based business, you can’t count on your personal home insurance to protect you if someone is injured. Home insurance won’t cover anyone visiting you for reasons of business who is injured, or if your business is sued.   

Commercial auto insurance

If you need to use your personal vehicle to do business, it is important that you have commercial auto insurance on it. Your personal auto insurance will not cover you if you are using your vehicle for business. That is dangerous to your finances. 

Contact Sprout Insurance in Nettleton, MS when you are ready to choose the right commercial insurance for your business. 

Does my home insurance cover renovations?

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Does my home insurance cover renovations?

Yes and no. When you begin renovating your Nettleton, MS home, you need to obtain construction insurance from Sprout Insurance to cover the changes in effect and the added liability of the workers completing the task.

Once the workers finish your renovations, you need to update your home insurance. When you purchased your homeowners’ insurance, you bought the policy predicated on your home as purchased. Once you change anything to upgrade it, you make your home more valuable. That means you need to update your home policy to cover its increased value.

If you read your homeowners’ insurance policy carefully, you’ll note that it insures your home for a specified value, even though it may not express it in a dollar and cents figure, such as $250,000. Look for language that describes the insured value in replacement terms. These include:

  • appraised value,
  • market value,
  • assessed value,
  • replacement value,
  • agreed value
  • actual cash value.

Unless you apprise your insurance agent of the changes to your home, they have no documentation of its value beyond the original one from when you purchased the policy. The most commonly used valuation method in home insurance, replacement value, is based on existing information.

Your existing policy doesn’t cover your updates to your home until you update it. The same is true of big-ticket items you purchase that you don’t add to your home inventory filed with the insurance agency.

Contact Sprout Insurance serving Nettleton, MS for more information or to talk about your planned renovations. We’ll help you add construction coverage to your policy package, then update your home insurance when the work crews finish your home renovation.

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