Do you love making crafts?
Do you have nowhere to keep your mountain of creations anymore? Have you dreamed of opening your own Etsy shop? Longed to sell you things at your local weekend market? Do we ask too many questions? The answer to that last question is yes; unfortunately, it’s a side effect of being an insurance broker.
You probably want to let your insurance broker know if you ever decide to sell your artistic creations. Most policies have a clause stating that the policy only remains in force if your home is used for personal use. That means your policy could be void if you work from home or run a business from your home. As soon as you start making money from your hobby, that could become an issue for your insurance coverage.
Why does it even matter?
Long story short, Home Insurance companies are not in the business of covering a business’s liability. In most cases, your knitted hat won’t harm anyone if you sell it to them, but what if you accidentally left a needle in a sweater you sell? You could be sued for their injury if that needle hurts a child. The people who sue you will also automatically sue your Home Insurance provider because they cover your personal liability. That’s why we need to know when you start a home-based business, no matter how small.
Another aspect to consider is that your policy covers your personal content. However, once they are used for business, your policy no longer fully covers them. We don’t want you to be out spending your own money at Michael’s after a claim, so to keep those items insured, you’ll want to give us a call.
Are my crafts going to cost me thousands?
Probably not. In most cases, we can add extra coverage to your policy so that you are covered no matter what. The cost will depend on the risk associated with the business. Someone who knits hats to sell at a Christmas Fair will pay a nominal amount, but someone running a catering business from their kitchen will expect to spend more.
So my Home Insurance can always cover me?
No, not always. Again, it depends on the business you’re running from home. Whether you have clients or customers visiting will make a difference too. If your Home Insurance company is unwilling to provide you with insurance under their policy, the next step is to look into a Commercial (or Business) insurance policy.
Just give us a call!
If you are ever worried that what you are doing in your home may affect your Insurance coverage, please call us. It’s much nicer spending a few minutes of us asking you many questions than dealing with a denied claim.
Want to do more crafts?
Also, if anyone wants to attempt to knit a house, we’ve got just the pattern for you: https://www.ravelry.com/patterns/library/gingerbread-house-8. We probably won’t insure it, but we’d love some pictures if you try!
If you live in Alberta or British Columbia and are looking for Home Insurance, we are here to answer any questions you may have about our range of home insurance products and services. Contact our team at 1.844.544.4663 and see what makes us Harbord – The Home Insurance People™!