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Identifying the Assets of a Home-Based Business for Insurance Purposes
There is a lot to consider when you are running a home-based business, and insurance is one major issue. You need to dot all of your Is and cross all of your Ts to ensure that you can get the money you are investing in if disaster strikes. This article will each you how to identify all of your assets for insurance reasons.
The first step is always to contact your insurer to find out what coverage you have within your homeowner’s policy. It is likely that you won’t have much if any coverage of your business equipment, which can be thoroughly disappointing. Next, ask whether or not they offer home business insurance. If so, you may be able to bundle your policies and therefore get a great deal. You should still do some comparison shopping with other companies to ensure you are getting the best premiums and coverage available.
Start a list of the things you use for your business, called property. For example, your computer, your monitor, your phone, your desk, your chair, your filing cabinet and your printer. Make your list extremely comprehensive and include model and serial numbers. Keep the receipts for anything you are using for your business. Also, take a photo or video of your home office if possible. Put all of this information onto a USB key or CD and put it in a safety deposit box or safe.
As you create your list, determine how much of the use of the item is for your business and how much is personal. For example, if you entertain clients at your home, then your coffee maker will count as a business item. That said, if you only have clients over 10 times a month, you can only claim 30% of its value. If it is under 51%, then it doesn’t count.
Look at each item on your list and determine if it is both ordinarily used in your business and if it is a necessity. For example, your television isn’t both ordinarily used and a necessity if your business is web design. It would be for a daycare or video editing company, though.
Do you have any property elsewhere other than your home? Off-site property can be covered, such as purchases of stock which haven’t arrived yet. You can get additional coverage for these items and anything you have in storage, such as large equipment.
Now that you have all of this information in order, talk to your insurance agent. He will be able to get you the best coverage at the lowest rate from a trustworthy company. He is on your side, so make the most of his services.
Insurance is a complicated topic for sure, but a bit of knowledge goes a long way. When you are able to use the tips in this article as a step by step guide, you will be able to get your insurance ducks in a row. Being protected when the worst happens will give you a great deal of peace of mind.Quality is our passion and the reason we developed our website. We want to spread the word about SEO so that nobody has to put up with mediocre and second best again.