Running a business from home sounds simple—but insurance can get tricky fast.

Why Home Businesses Are Different

Most homeowners insurance policies do NOT cover business activities. When you applied for your home insurance, you were likely asked:
“Is there a business run from the home?”

If you said no, but later start a business, that can cause big problems.

The Big Risk: Material Misrepresentation

If an insurance company finds out you were running a business and didn’t report it, they may:

  • Deny a claim
  • Reduce payment
  • Cancel your policy

This is called material misrepresentation—it means important facts were not shared.

“But Clients Don’t Come to My House…”

Still counts.

If you:

  • Sell food from home
  • Bake, cook, or prep items for sale
  • Run an online shop
  • Have a side hustle

Your home is now part of a business—even if no customers ever show up.

Auto Insurance Is Impacted Too

If you deliver food or products using your car, you are operating like DoorDash or Uber Eats.

That means:

  • Personal auto insurance may not cover accidents
  • The business use must be reported
  • You may need a business or delivery endorsement

Many people skip this step—and don’t realize it until a claim is denied.

The Simple Truth

Home-based businesses are awesome.
Unreported ones are risky.

A quick review can protect:

  • Your home
  • Your car
  • Your income

Better safe than “wait…that’s not covered.”

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