Home InsuranceApril 1, 2021

Will working from home affect my home insurance?

To reduce the spread of the virus during this pandemic, the Canadian government ordered online classes for students and a work from home mandate excluding essential workers. With this new mandate in place, more and more companies have announced that working from home will be the new normal. Many professionals have gradually adapted to the process of working remotely from home. Although this may be the case, many may be concerned whether this lifestyle will affect their home insurance.

Home insurance is vastly different from car insurance. The more mileage you drive with your vehicle, the higher the risk on the road, and the premium becomes more expensive. However, the longer one stays at home does not necessarily mean the risk of home insurance will increase accordingly.

For example, the presence of a homeowner in the building will reduce the occurrence of burglary or robbery. Environmental risks such as fires and water pipe bursts will be noticed earlier, preventing severe damage. On the other hand, more individuals are cooking at home, doubling the risk for kitchen fires. What’s even more serious is that casualties caused by fires have soared during the pandemic! In the first half of 2020 alone, the number of fatal fires in Ontario has increased by 65% compared to last year! Remember to turn off the stove when not using and turn off the oven.

With regards to basic company provided equipment such as laptops, display screens and even office furniture used at home, they are protected by the company’s commercial insurance and do not need to be mentioned to your insurance company. You can rest assured that working from home will not have a significant impact on the coverage and premiums of your home insurance.

However, if you run a business at home, your home insurance may be greatly affected.  Business equipment and goods need to be stored at home, as well as possibly providing services to door-to-door guests. This is completely different from the nature of working at home, which will directly affect home insurance and even claim settlement! If you are currently running a business at home, it is recommended to contact your insurance broker as soon as possible to discuss solutions. According to different business conditions and the requirements of different insurance companies, you can choose to purchase additional insurance or independent commercial insurance. If that is the case for you, feel free to contact a licensed broker at CHAT Insurance right now!