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Can working from home affect my insurance rates?
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Working from home used to be something that was reserved for moms on maternity leave or artists who were starving for their big break. Having a remote career was seen as an odd alternative to the fulfilling work done at the office.
Then the COVID-19 pandemic hit. The world was flipped upside down. People were forced to stay at home during government-mandated shutdowns. Industries that never thought they could produce quality work remotely were now forced to allow their workers to alter the location of their services.
But what many people don’t consider is how this shift impacts their insurance coverage, especially home insurance coverage, auto insurance, and even business insurance.
Auto insurance is one of the best ways to save money. An insurance work-from-home policy is going to be a lot cheaper than insurance when driving to a location to work. When you don’t drive often, you are much less of a risk to the insurance company. You are on the road less, and there are fewer chances for car accidents to occur.
Another benefit to working from home is that you can apply for tax breaks on rooms you use for work. Do you need to work freelance to get these discounts? We’ll talk about these things and try to help you understand whether your remote work will help you get any of these benefits.
Why does working from home help my insurance rates?

Insurance rates are based largely on risk. So when you no longer commute to work every day, your risk of filing an auto insurance claim drops significantly. Fewer miles driven means fewer chances of an accident. Some insurers offer low-mileage discounts, and many remote workers see real savings when they qualify.
Not every company engages in these benefits, though. Progressive has less than a 1% discount per year for low-mileage drivers.
If you live close to your job, think about taking public transit or carpooling to work. Bicycling is another option. There are a lot of creative ways to get cheaper insurance depending on your job’s location. You just need to think outside the box and talk with your agent and your boss about remote work versus in-person work.
When your home becomes your primary workspace, other insurance considerations come into play, especially if you use equipment such as a laptop, printers, or other tools for business purposes. While standard personal property coverage might extend to these items, you may not be fully protected if you’re using them for a home-based business.
This is where work-from-home insurance or insurance cover working from home becomes essential. These policies or riders are tailored to cover business property, liability for clients visiting your home, and even cyber risks if you’re handling sensitive data remotely.
Building a home office

Exercising at home has required many people to build home gyms, and working from home requires the same train of thought. You probably will have to carve out some space in the house specifically for your job.
Some people may have managed to focus in the living room despite the loud distractions from pets and children, but it’s not a viable long-term solution. This is when building a home office comes into the picture as a home improvement resolution.
You may be wondering whether you can get better rates on your homeowners’ insurance for working from home, much in the same manner that we talked about with auto rates. The answer is not very clear. Homeowner’s insurance is typically only discounted if you improve the safety of your home in some way.
Liability and Business Coverage Considerations
Even if you’re just one person working alone at home, liability coverage is a key piece of the puzzle. For instance, if a delivery person trips on your icy driveway while dropping off work supplies, your personal liability coverage may not be enough if it’s deemed to be a business-related activity.
That’s why independent contractors, freelancers, or anyone using their home for business should consider business insurance. It fills the gaps that a traditional homeowners policy often leaves open, especially if you’re seeing clients at home or shipping out products.
Tax Breaks and Other Financial Benefits
Beyond insurance, working from home has other money-saving perks. If you’re an independent contractor or self-employed, your home office may qualify as a tax write-off, provided the space is used exclusively for business. This can include a portion of your rent or mortgage, utilities, and internet, depending on the setup.
You’ll also save on fuel, car maintenance, and maybe even your wardrobe. And if working remotely allows you to relocate to a safer neighborhood or city, you could see reduced premiums on both home and auto insurance policies.
Talk to Your Insurance Provider
Whether you’re a freelancer with a home-based business, a small business owner running operations remotely, or one of the many full-time remote employees making the shift permanent, it’s critical to speak with your insurance provider. Let them know how your work situation has changed. Ask whether your current policies cover business purposes, and whether additional work-from-home insurance or business insurance might be necessary.
Conclusion
Remote work is here to stay, and it brings with it a host of practical and financial changes, including those related to insurance. While reduced driving may lower your auto insurance premiums, your home insurance coverage might need a boost to account for business property, liability, and the unique risks of using your home for business.
Protecting your space and your work means thinking beyond the basics. Whether you’re a freelancer, an independent contractor, or running a small business from your kitchen table, make sure you have the right policies in place to support your new work environment.
Your home is where your work lives—make sure it’s protected.
Read more: Why insurance company want to inspect my house?
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Comments
I didn’t even know and I was working from home all this time, ha ha