Is working from home covered by my home insurance?

Key takeaways

• Your home insurance will usually cover items you own, but it might not cover equipment provided by your employer

• You might need additional cover if you store stock at your home, have employees coming to your home to work, or have business-related visitors

• If you run a business from home, you might need business insurance

• Using your car for business use will affect your car insurance

The debate about the benefits of working from home is in full swing, with some employers keen to get workers back to the office and others embracing remote or hybrid working.

If you work from home even some of the time, you should check your insurance situation.

Is working from home covered by home insurance?

Home contents insurance generally covers possessions such as your furniture, clothes, and electrical appliances against theft and damage. But not all policies cover everything you need to work from home.

While most insurance policies may cover office equipment for basic administrative tasks, they might exclude items used for business purposes.

Homeworkers should check if contents policies cover accidental damage to mobile phones, laptops, or other equipment once the items are outside the home. It’s also a good idea to check single item limits if you have expensive equipment.

If your company provides the equipment you use to work from home – a laptop, for example, this should be covered by your employer’s business insurance.

Households typically paid £265.96 for combined buildings and contents insurance in November 2024 (median price based on policy type).

Does working from home affect house insurance?

If you just do administrative work from home – at a computer, for example – you usually won’t need extra insurance.

If you take work-related equipment out and about – for example, if you work on your laptop in a café – you should make sure you have all risks/personal possessions cover. This will cover for loss or accidental damage to your possessions outside the home.

Depending on the nature of your business, you might need business insurance.

What is business insurance?

Business insurance covers a wide range of risks and can be tailored for your particular business.

You might need it if:

• Stock is stored at your home

• You employ other people

• Customers visit you at your home

• You have business premises

• You have adapted your home for business use – building a garden office, for example

Business insurance can include:

Business insurance policies might also include:

• Business interruption

• Supply chain breakdown

• Cyber insurance

Do I need to tell my car insurer if I work from home?

If you use your car for business use, you will need to declare this when you take out car insurance. Including business cover will normally cost more than if you just use your car for personal or social use.

You will need specialist insurance if driving is a key part of your job – if you are a delivery driver, for example.

Do I need public liability insurance to work from home?

Whether you need public liability insurance if you work from home depends on the nature of your business.

Public liability insurance protects businesses if they're sued. It covers your business in the event of a third-party claim such as causing injury, illness or death to the public, or causing damage to property.

You might need public liability insurance if your work means clients or other members of the public visit your home – you teach yoga in your garden, for example.

What is professional indemnity insurance?

Professional indemnity insurance protects businesses and professionals from legal costs and compensation claims if they're accused of negligence or a breach of professional duty.

Whether you need professional indemnity insurance depends on your industry. For example, you might need it if you are an accountant offering tax advice to clients.

Do I need insurance for employees working from home?

If you have employees, employer’s liability insurance is usually a legal requirement.

With a minimum coverage of £5m, it's designed to protect against claims made by employees who suffer injuries or illnesses due to their work.

The main exceptions to this cover being mandatory is if your business is not a limited company or you only employ close family members.

Compare home insurance

When it comes to finding the right insurance for your home-based work, it’s easy to find and compare home insurance policies with MoneySuperMarket. If you need business insurance, we’ve also teamed up with Simply Business so you can compare cover from some of the UK’s leading business insurance companies.