Sunday, April 21, 2013

Is that detached structure REALLY insured?



A homeowners policy usually provides coverage for detached structures, such as a garage or shop building, equal to 10% percent of the value of the home. But if that detached building is used for business in any way, there is no coverage; even incidental use like storing business equipment or inventory.  Business use is some activity where you make money or make a trade in value for your service, even if there are no customers visiting the premises. The same exclusion applies to a detached structure which is rented for residential purposes, like a guest house or apartment. That small business requires special insurance to cover the building, equipment, inventory and liability exposures. 

So if you are painting cars, building birdhouses, a contractor, or have an apartment, office studio, school, day care, etc. You need special insurance. Give MIM a call to get a quote today!






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