The COVID-19 pandemic has resulted in some sweeping changes in the way America does business. One obvious side-effect is the vast increase in the number of people who currently work from home (WFH), with millions of U.S. workers now performing some or all of their professional duties from their homes. Economic pressures spawned by the pandemic have also sparked an increase in multigenerational homes that include an elder grandparent or an adult child. 

These forces have changed how we live, how we work, and how we plan financially. Yet many people overlook one critical area—their insurance coverage.  Does your homeowner’s insurance protect your home office? Are your work-related home purchases covered? And what if an elder parent or adult child moves in with you? How can you be sure that their possessions are safeguarded by your policy?

Does Your Homeowner’s Policy Cover Your WFH Business?

If you’ve transitioned to a WFH lifestyle due to the COVID-19 pandemic, you shouldn’t assume your home office, equipment, etc. are now covered without some limits. Home insurance typically protects personal property in regular home use—with lost or damaged items replaced without limit (minus your deductible). But when you use your personal residence for business, there are limits on the amount your home insurer will pay to replace lost or damaged property. Homeowner’s policies typically offer only partial protection of business property (such as computers, fax machines, printers, etc.) used at home and it gets more complicated when the equipment is owned by your company.

Now’s the perfect time to review your homeowner’s policy with an experienced independent agent, who can help review your situation, educate you about potential vulnerabilities and highlight areas that might need expanded coverage. If you rent, you need renter’s insurance. A seasoned insurance professional can help you navigate the often-complex landscape of policy options to help you select the plan that offers the right combination of coverage and cost for you.

You should understand what your company is responsible for and what might be responsible and make sure it is covered properly. 

Multigenerational Living – Is Everyone Fully Covered?

These days, more elder parents and adult children are living at home. Multigenerational families under one roof need coverage that’s adequate to protect the cherished possessions as well as their personal liability? 

Just because someone moves in with you does not mean they automatically have the same protection as you do on your insurance policies.  Most glaring are their property as well as their personal liability.  In most cases, the broadest coverage is only afforded those who are legally considered residents (registered to vote, driver’s license, file their taxes, etc. at your address). If an adult child who fled NYC comes home, they will likely need to maintain their tenant insurance at their apartment or purchase their own tenant coverage at your location if the stay is temporary. The same may apply to parents. If you’re not certain, it’s a good time for a review of your circumstances. 

Are All Your Household Drivers Covered for All Your Household Vehicles?

Another frequently overlooked area is your auto insurance. If your home has suddenly become a multigenerational household, be sure that all licensed drivers are insured for all vehicles in your possession. Even a small fender-bender can quickly escalate into a nightmare if you discover your adult child isn’t covered on your policy as a driver for your vehicle.  Like their contents and personal liability, you want to be sure all have coverage if they are regularly using the vehicles titled to you as you will be named in any lawsuit that might result from an accident.

 Be Sure You’re Protected 

We at MAGIS understand how hard you’ve worked to build the life you have. That’s why we work just as hard to protect your most essential and beloved possessions.

Working from home? Adding an extra member to the household? Don’t risk being underinsured We are independent insurance agents who can review your situation, policies in detail, identify potential vulnerabilities, and suggest cost-effective insurance options that safeguard you.