House insurance and running a business from home

[clockworks]

I repair clocks, working from home. Sole trader.
I have separate cover for the business - public liability, stock, goods in transit, etc.

I used to have my house insurance with NFU, as they offered "rural small business" cover. They stopped doing this a few years ago.

The vast majority of insurance companies are happy to cover normal clerical "work from home" or home office self-employment, but won't touch any business that makes or repairs things.

I had to go to a high street broker to get house insurance that allows me to run a business from home, and then get separate cover for the actual business.
The business insurance is £370 a year, which is OK.

Renewal time, and the house insurance is £740.
On comparison sites, I can get house insurance for just over £400 - if I wasn't running the business, or was just doing "computer stuff".

So, I'm effectively being "double charged" for business insurance. £370 for the business, and £300+ extra for the house insurance which doesn't provide any cover for the the business, just acknowledges that I have one.

How do others deal with this?

[MustangGT]

Go to a broker and discuss your requirements. Insurance Jon on here may be able to help.

[elise2000]

Has the same problem. Main issue was I needed coverage for a fairly large amount of stock. Went with expression insurance in the end

[clockworks]

elise2000 said:

Has the same problem. Main issue was I needed coverage for a fairly large amount of stock. Went with expression insurance in the end

I switched to Expression a couple of months ago for my business insurance. I asked about home insurance at the time, I think he said they don't do it.

[Greasemonkey13]

You are not being double charged…

On one policy you are being charged for the work you do - tools, stock, public and products liability etc.

They are not covering your buildings, contents, property owners liability etc.

Your home insurance policy WILL be covering your buildings, contents, Property Owners Liability etc.

Despite insuring it separately, running your business from home increases the risk of you claiming against one of the areas of cover on your home insurance policy - so your rate has increased accordingly.

Insurers will have large databases full of information that says anyone running a business from their house is statistically more likely to claim for fire, theft etc than someone who does not run a business from home.

As you bring a greater risk to the ‘pool’ - you pay a larger premium.

[clockworks]

Greasemonkey13 said:

You are not being double charged

On one policy you are being charged for the work you do - tools, stock, public and products liability etc.

They are not covering your buildings, contents, property owners liability etc.

Your home insurance policy WILL be covering your buildings, contents, Property Owners Liability etc.

Despite insuring it separately, running your business from home increases the risk of you claiming against one of the areas of cover on your home insurance policy - so your rate has increased accordingly.

Insurers will have large databases full of information that says anyone running a business from their house is statistically more likely to claim for fire, theft etc than someone who does not run a business from home.

As you bring a greater risk to the pool - you pay a larger premium.

That's why I put "double charged" in inverted commas.

If I was running an "office/computer" business from home, no problem, I could get a standard home insurance policy. Maybe it would be "loaded" a bit, but the market competition keeps prices down. Online quotes suggest I could get a fully-loaded policy (legal cover, goods outside the home, new for old accidental damage, emergency callouts, etc.) for around £470. Basic policy for around £380.

Because I use a spare bedroom as a workshop (rather than as an office), my choice of insurer is much more limited. Less competition, higher prices. £740.

I get maybe 3 customers at my house a week. Since Covid, they just step into my porch. No more risk to the insurer than having Amazon or Evri deliveries.


The actual work I do is no more of a risk than a hobbyist building models, doing a bit of wood turning, or repairing an old car.
Because I'm a sole trader, not tinkering as a hobby, mainstream insurers won't quote.

I accept the fact that I'll be paying more, but getting on for double is pushing it.

[elise2000]

clockworks said:

elise2000 said:

Has the same problem. Main issue was I needed coverage for a fairly large amount of stock. Went with expression insurance in the end

I switched to Expression a couple of months ago for my business insurance. I asked about home insurance at the time, I think he said they don't do it.

I had two policies with them. Think it was one buildings and one business stock. Maybe they’ve changed now. I took out this policy c.2023 and finished it a few months ago.