Will working at home affect my mortgage and home insurance?

Working from home changed how many of us do our jobs. You might wonder if typing away at your kitchen table instead of commuting to an office building changes your mortgage or home insurance. The answer is: it might!

Let's explore what you need to know about working from home and how it affects these important parts of homeownership.

How does working from home affect my mortgage?

Your mortgage company cares about how you use your home. When you first got your mortgage, you likely said you'd use the house as your main home. If you start running a business from home, this could change things.

Remote work vs. business use

There's a big difference between remote work and running a business from your home:

• Remote work means you're an employee who works from home instead of going to an office. This usually won't affect your mortgage.
• Home business means you run your own business from your house. This might affect your mortgage, especially if clients visit your home or you've turned a large part of your house into a workspace.

When should I talk to my mortgage company?

You should call your mortgage company if:

• You've turned a room into a shop where you sell things
• Customers regularly come to your home
• You've built new structures on your property for your business
• More than 25% of your home is used only for business

If you're just using a computer in a spare room to do your regular job, you probably don't need to worry.

Do I need business insurance if I work from home?

Your home insurance needs more attention if you work from home. Standard home insurance policies weren't designed with home offices in mind.

Equipment cover

Your work computer, printer, and other equipment might not be fully covered by your regular home insurance. Many policies have limits on how much they'll pay for business equipment.

If you have expensive work equipment, you might need extra cover. This is especially true if your employer doesn't insure these items.

Liability concerns

If delivery people or clients visit your home for work reasons, your regular home insurance might not cover accidents. For example, if a delivery person slips on your steps while dropping off work packages, your standard policy might not help.

What steps should I take?

When thinking about the most suitable insurance policy, you should consider the following:

1. Call your insurance company and tell them about your work situation
2. Ask if your current policy covers your work equipment
3. Find out if you need extra cover for business visitors
4. For bigger home businesses, look into a business owner's policy

Simple changes can protect you

The good news is that addressing these insurance and mortgage issues is usually simple. Most remote workers only need small changes to their insurance policies. These changes often cost just a little more money each month but give you much better protection.

When to seek professional advice

If your home has become a busy workplace with…

• regular client visits,
• employee meetings,
• inventory storage,
• valuable equipment,

…then it's time to talk with an insurance agent who specialises in home businesses and a mortgage professional.

Final thoughts

Working from home offers many benefits, from saving on commute time to wearing comfortable clothes. Just make sure your paperwork keeps up with your new work style! A quick call to your mortgage and insurance companies can prevent headaches later.

Remember: Being honest about how you use your home protects you and your property. Most companies understand that work has changed and have solutions ready to help you.