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Home Business Insurance

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Home business insurance: Business property vs. homeowners coverage

Home Business Insurance. The line between homeowners insurance and business property insurance can be blurry if you have a home-based business.

Your homeowners policy may provide some coverage for your business property, but limits are typically low. And it may not be enough if the value of the property is more than a few thousand dollars.

Home business insurance can help protect everything you need to run your company with much higher limits than those provided by homeowners insurance. And it offers additional protection homeowners insurance doesn’t have.

What does homeowners insurance cover?

Homeowners insurance is meant to protect your home and personal possessions.

If your house burns down in a fire or a tree comes crashing through your roof, the insurance company will help you cover costs to repair or replace your personal belongings and the physical structure of your home.

But most homeowners insurance policies only cover business property up to $2,500. So if that same tree comes crashing through your roof and destroys the equipment you use in your business, your insurer will reimburse you up to the policy’s limit for business property.

If you only need a laptop and some basic office supplies, that might be enough. 

You might need business insurance if you have more than $2,500 in business equipment at your home

If you have special business equipment, office furniture, or inventory stored in your home, you probably need more coverage than what your homeowners insurance can provide.

For example, let’s say you’re a photographer and you have a studio in an extra bedroom or garage at your home. The tree destroys your camera, lighting, backdrops, props, and other equipment. If you don’t have commercial property insurance, your homeowners insurance is unlikely to reimburse you for everything you lost.

If the limit isn’t high enough to cover all the property that was damaged, you’ll have to pay the difference to replace your equipment so that you can get back to work.

If you keep business supplies somewhere other than your home, such as in your car or a storage unit, the coverage limits in a homeowners insurance policy are typically even lower.


What does commercial property insurance cover?

Commercial property insurance helps protect all the things you need to do business. Plus, it covers things homeowners insurance doesn’t. Here are three types of coverage commercial property insurance offers that can help protect your home-based business: 

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Hello 2020-21 NBA Season!

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Things you need to know about the 2020-21 NBA season

Here are some common questions and answers about the format, rules, scheduling, structure, and health protocols of the 2020-21 NBA season.

The NBA and the National Basketball Players Association announced on Nov. 9 that they’ve struck a deal on rules for the 2020-21 NBA season, which will start on Dec. 22. On November 10, the NBA’s Board of Governors approved the amended Collective Bargaining Agreement for 2020-21 by a unanimous vote, allowing the 2020-21 season to begin. The NBA announced the 2020-21 season structure and format, including a playoff Play-In Tournament on Nov. 17.

In anticipation of the new NBA season, here are some common questions and answers about the 2020-21 NBA season.

Q: When does the 2020-21 NBA season begin and end?

Dec. 22 is the start date. The end of the 2020-21 season is tentatively scheduled for May 16.

Q: When did training camps open? When was the preseason?

Individual player workouts ran from Dec. 1-5 with Media “Week” taking place during the same time frame. Group player workouts went from Dec. 6-10 and the preseason ran from Dec. 11-19. In the preseason, each team played a minimum of two and a maximum of four games as part of the NBA’s 49-game preseason schedule. The game schedule for the 2020 preseason is available here.

Q: How many games will each team play in the 2020-21 NBA season

Each team will play 72 regular-season games, which is 10 games fewer than in a typical, 82-game NBA season.

Q: What does the 2020-21 schedule look like?

The schedule will be released in two segments, with the First Half of the schedule coming around the start of training camp and the Second Half of the schedule coming out during the latter part of the First Half. For now, the plan is for each team to play three games against each intraconference opponent (42 total), and two against each interconference opponent (30 games).

Q: How will the Play-In Tournament be structured?

The Play-In Tournament, which will take place after the regular season and before the first round of the playoffs, will include the teams with the seventh-highest through the tenth-highest winning percentages in each conference. For further information on the Play-In Tournament, click here.

Q: What are the Key Dates for the 2020-21 NBA season?

• Dec. 1-5: Individual player workouts and Media “Week”
• Dec. 6-10: Group player workouts begin• Dec. 11-19: Preseason games
• Dec. 22 – March 4: First Half of regular season
• March 5-9: All-Star break
• March 10-May 16: Second Half of regular season
• March 25: NBA Trade Deadline
• May 13-15: Class of 2020 Hall of Fame Enshrinement
• May 18-21: Play-In Tournament
• May 22-July 22: 2021 NBA Playoffs

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Careful when choosing your deductible

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Choosing Your Deductible | Shield Insurance Agency Blog | Start A Quote Today!

Careful when choosing your deductible

A high deductible is often a great way to keep your insurance premiums down.  However, you shouldn’t set a deductible that is so high that you cannot afford to pay the deductible when you have a claim.  I’ve seen people change their collision deductible from a $500 deductible to a $1,000 deductible because money was tight and this allowed them to save about $10 per month on the premium.

Wouldn’t you know it, but not even 2 months later they ended up in an At-Fault accident.  Money was tight so they didn’t have that $1,000 to get the vehicle repaired. It took forever to save up that $1,000 so they were down to one vehicle which made it tough getting back and forth to work.

Please make sure you have something in savings for an emergency.  Whether it’s a car accident or your furnace breaks down. Emergencies will happen, but if you’re prepared, you can transform that emergency into an inconvenience.

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Spring Lawn Care Tips

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Michigan Spring Lawn Care Tips and Tricks for a Healthy Lawn

When spring hits in Michigan, there’s a short period before summer comes where you have the time to care for your lawn and make it presentable!

This kind of spring lawn care usually includes ensuring your sprinklers are working properly to keep your lawn hydrated during the warmer months, taking care of your grass and soil with fertilizer, factoring in weed prevention, and of course, getting ready to do something about those pests and mosquitoes.

Everyone wants a bright, inviting lawn and garden, but sometimes it’s hard to know where to start. Take a look through these tips and tricks to be sure you have the best lawn on the block.

Tips and Tricks

Ditch Your Weeds


To keep your lawn looking clean and not overgrown, it’s always a good idea to start by taking care of your weeds. Weeds start to show up right when spring does. Michigan’s most common and most stubborn weeds can include Dame’s Rocket, Maple Seedlings, and Dandelion.

While not harmful to humans, besides the occasional allergy symptoms, weeds are essentially a death wish for your lawn. You’ll want to spray some weed killer or dig each one up from the root before it spreads. They can take over the lawn quicker than you think.

Use Fertilizer On Your Lawn

Fertilizing your lawn in the spring gives it the nutrients it needs to grow back after the harsh Michigan winters. After the snow melts and the spring rain comes, the nutrients your lawn needs have long been washed away.

A properly fertilized lawn can thrive, just like the one you’ve always dreamed of. It can recreate the whole look of your home, without really changing anything at all.

For a bright green lawn, a fertilizer containing Nitrogen helps; and you’ll want something to ensure your roots are healthy as well, so one containing Phosphorus is a good idea as well.

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Get Gardening Muscles in Shape and Prevent Injuries

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Get Gardening Muscles in Shape and Prevent Injuries. Before digging, pruning, and planting, make sure you’re ready for the work

by Susan Moeller, AARP, March 15, 2021

Christine Zellers tries to run five miles every day and, at 53, considers herself to be in shape. But even she admits that gardening can leave her sore and achy.

“I feel it, especially in the beginning of the season,” she says. 

Zellers, an assistant professor of family and community health sciences with Rutgers Cooperative Extension of Cape May County, New Jersey, teaches gardening, leads group exercise classes, and grows vegetables and herbs in her own garden in Ocean City, New Jersey. To protect her body, she tries to remember to stretch and limber up before heading out to dig, plant, or lug big pots around.

“You want to be thinking about the kind of movement you’re going to do and make sure you’re strengthening those body parts, like your core and your back and your legs and your quadriceps,” she says. “So you want to warm up a little bit just like you would if you were going for a run or doing an exercise class.”

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National Bath Safety Month

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4 Tips for National Bath Safety Month

Keep the fun in the tub throughout the month of January.

Stay with her. 

The American Academy of Pediatrics recommends that children 4 and under always have a parent or caregiver present when they are near water, including the tub. Accidents can happen in an instant.

Prevent slips. 

Young children do not have the coordination or strength to hold steady if they lose their balance. Affix a slip-resistant plastic mat that suctions to the bottom of the tub and make sure the throw rug outside the tub does not slide when stepped on. Consider installing a grab bar for kids to hold onto when stepping in and out of the bath.

Test the temperature. 

Always wait until the tub is finished filling up before placing your child in the water, as the temperature can change. Set your home’s water heater to deliver water no hotter than 120 degrees to lower the risk of scalding. If you don’t have control over the heater, buy an anti-scald device that attaches to the faucet.

Beware of Sharp Edges

Use a rubber cover for the faucet head and drape a towel over metal rails for shower doors when your child is in the bath. Make sure any glass shower doors are made of shatterproof glass. Avoid bath toys with hard edges or points that could be hazardous if your child falls onto them.

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How Should You Insure Your Home-Based Business?

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Shield Insurance Blog | Business | Business Insurance | Start a quote today!

Three Basic Coverage Options Home-Based Business Owners Should Know

 Updated November 19, 2020

Many businesses begin in the home. As of 2018, there were 30.2 million small businesses operating in the United States, and 50% of them were home-based.

A home-based business offers many advantages, including low startup costs, flexibility, tax benefits, and freedom from commuting. Like any business, a home-based operation requires insurance. Several insurance options are available so business owners can choose the one that best meets their needs.

Why You Need Home-Based Business Insurance 

While home-based businesses may operate on a small scale, they face many of the same risks as their larger counterparts. These include third-party claims, auto accidents, and damage to company-owned property. To protect themselves from losses, business owners must purchase adequate insurance.

Some home-based business owners might assume their homeowner’s insurance will cover claims arising from their business activities. This is a faulty assumption because most homeowner’s policies contain business-related exclusions and limitations. For example, many policies exclude structures not attached to the dwelling (like a detached garage or shop building) if they’re used for business purposes.

Types of Coverage

Small business owners have three basic options for insuring home-based operations. They can cover business exposures via endorsements to a homeowners policy, purchase an in-home business policy, or buy a business owner’s package policy. Which option is best depends on the size and nature of the business and the cost of insurance.

Homeowners Policy Endorsement

Many home-based businesses depend on equipment like computers and printers. Unfortunately, most homeowner’s policies provide a very low limit (typically $2,500) for equipment on the residence premises that are used for business purposes. Business owners may be able to double or triple that limit by purchasing an endorsement for a modest additional premium.

Business owners may also have the option to add a homeowners liability endorsement to their policy. The endorsement covers third-party claims by customers or delivery people for injuries sustained on their property. It’s typically available only if policyholders have few business-related visitors.

In-Home Business Policy

An in-home home business policy affords broader coverage than a homeowners endorsement and may cost less than $300 per year. It’s a middle ground between a homeowners policy and commercial insurance. Policies typically include business personal property and general liability coverages. Optional coverages like business income, valuable papers, and accounts receivable may also be available.

In-home business policies can vary widely from one insurer to the next. Before you buy a policy, be sure you understand what it does and doesn’t cover.

Business Owners Policy

A business that needs more coverage than an in-home policy provides can choose a business owner’s policy (BOP). A BOP is a commercial package policy designed for small businesses. It includes commercial property, business income, and general liability coverages.

The general liability section covers claims for bodily injury or property damage, including claims against the business that arise out of its products or completed work. It also covers Personal and Advertising Injury Liability and claims based on damage to rented premises. A wide variety of endorsements are available for broadening or restricting coverage. Small businesses pay an average annual premium of $1,191 for a BOP.

If your home-based business sells a product or does construction work, be sure your liability insurance includes coverage for products and completed work.

Other Coverages To Consider

Homeowner’s policies, in-home business policies, and BOPs provide general liability and property coverages only. Here are some other coverages home-based businesses should consider.

Commercial Auto Insurance

Many home-based businesses use vehicles in their day-to-day operations. Business owners should not rely on a personal auto policy to insure business-use autos unless they have verified with their insurer that those vehicles are covered. Personal auto insurers generally won’t insure vehicles registered to a business (other than a sole proprietorship). Moreover, personal policies don’t cover trucks larger than a pickup or vehicles used for delivery.

A business auto policy includes commercial auto liability and physical damage coverages. It’s a flexible policy that can be tailored to the needs of a business by the use of endorsements. It can cover vehicles the business owns or hires as well as autos it doesn’t own (like employees’ autos) that are used in its operations.

Errors and Omissions (Professional) Liability

Accountants, lawyers, engineers, consultants, and other businesses that provide a service or advice to clients may need errors and omissions (E&O) liability insurance. Also called professional liability coverage, E&O insurance covers third-party claims for financial losses that result from mistakes made by a business when serving clients. Most E&O policies are written on claims-made forms.

Small business owners typically pay between $500 and $1,000 per year for an E&O policy.

Workers’ Compensation Insurance

Like all businesses, home-based companies must comply with state workers’ compensation laws. The obligation to buy workers’ compensation insurance is typically determined by the number of workers a business employs. Many states require businesses to purchase coverage if they employ one or more workers.

Most states don’t require sole proprietors to purchase workers’ compensation insurance if they don’t employ any workers. Many states allow sole proprietors to purchase coverage for themselves

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6 Home Renovations that Can Affect Your Insurance

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If you’re planning a home renovation, you may want to call your insurance agent first because this decision can impact your homeowners insurance. Some home renovations will change the amount of coverage you need, while others could even help you qualify for a discount. We cover six common scenarios that could affect your insurance, so you can plan ahead.

1. Building a New Addition

When you expand and improve your home with a home renovation, you could likely increase its replacement value. This is the cost to repair or rebuild your home. Some additions that could increase your replacement value include: adding a second-story bedroom, expanding the living room or building a new garage.

After building a new addition, or making updates or other improvements, you may need to increase your coverage because the value of your home, and the cost to rebuild it will likely have increased. Most insurance companies require your Coverage A or dwelling coverage limit be at least 80 percent of the replacement value of your home.

Your insurance agent can recalculate your home value to determine whether you’ll need more coverage because of the addition or improvement.

2. Building a Pool

If you’re looking to add a pool, you will want to contact your insurance agent to review coverage for changes to your property’s value, as well as any increase in risk. When people are swimming and running around the pool, there’s the chance for an accident. If someone gets hurt, they could try to hold you responsible for damages. This can apply even if the accident isn’t your fault.

Check with your agent to see whether your existing policy covers a pool and if you need to increase your liability coverage. This coverage can help pay damages to injured persons and provide for a defense if you are sued as a result of their injuries.

You should also ask your agent what steps you can take to keep your pool safe so you can avoid accidents. Adding a fence with a lock is a smart move. You could also add lights with motion sensors or a pool alarm to discourage trespassers. Consider skipping the diving board, because this increases the chance of an accident and your insurance cost.

3. Adding a Deck

A new deck is another improvement that can add value but also risk, especially if the deck is attached to a second story or higher. You should let your agent know that you’ve added a deck, so he or she can adjust your policy as necessary.

4. Renovating the Kitchen

Upgrading the kitchen can significantly increase the value of your home, especially if you switch to higher-quality counter tops, appliances and new flooring. You should contact your agent to see if you need to increase your insurance coverage.

If your contractor upgrades the plumbing or electrical wiring as part of the renovation, ask your homeowners insurance agent if you qualify for a discount or if your coverage needs to be adjusted. These upgrades can reduce the chance of flooding water damage and fire, so check if your insurance company has discounts that can help to reduce your premium.

5. Basement Renovations

Finishing your basement can also increase the value of your home. That means, yet again, you may need more homeowners coverage. Flooding can be a concern, especially for the lowest floor in your house. It is important to note that most homeowners insurance policies do not cover damage caused by floods. Ask your agent to review your coverage and look to see if there are steps you can take to help prevent future damage, like installing a sump pump.

6. Redoing the Roof

Before you redo your roof, ask your insurance agent whether this could qualify for a discount. Some companies offer a discount when you reinforce the roof or use stronger roofing materials that are wind, hail and leak-resistant. Your agent can explain how to qualify. At the same time, redoing the roof could increase your property value, which means you might need more coverage.

Home Renovations

It is a good idea to contact your agent when you’re considering making home renovations. Their knowledge and expertise can help you get the most out of your discounts while making sure your home is adequately insured.

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5 Home Renovation Projects for the best ROI

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5 Home Improvement Renovation Projects That May Have the Biggest Return on Investment

Conventional wisdom has long held that kitchens and baths sell homes. Those are also two of the more expensive areas to tackle for home renovation, but if you make sound design decisions and choose the right materials, you could end up making your home more appealing to potential buyers – and a more enjoyable place for you to live. And, if you’re handy, some of these ideas may even be great DIY (do-it-yourself) home projects.

A study from the National Association of Realtors confirms that kitchens and baths still top the list of interior home improvement projects that appeal most to potential buyers. The survey ranked the projects by the percentage of the remodel cost that would likely be recovered based on the home’s resale value after the remodel. These five home improvements can potentially provide the biggest bang for your buck when it comes to ROI.

Complete Kitchen Renovation

  • National Association of the Remodeling Industry’s (NARI®) cost estimate for the project: $68,000
  • REALTORS® estimated cost recovered: $40,000
  • Percent of value recovered from the project: 59%

The look and feel of a kitchen can serve as shorthand for how up-to-date the owners have kept a house. Potential buyers have been known to rule out homes based on kitchens alone. Stainless steel appliances and granite countertops continue to be on many buyers’ checklists, especially those who want to move right in and start entertaining.

The top reason for renovating a kitchen, cited by 24% of homeowners, was to upgrade worn-out surfaces, finishes, and materials. According to the Remodeling Impact Report, 10% of realtors said a completely renovated kitchen most recently helped them clinch a deal, resulting in a closed sale.

Kitchen Upgrade

  • NARI’s cost estimate for the project: $38,300
  • REALTORS® estimated cost recovered: $20,000
  • Percent of value recovered from the project: 52%

A less expensive alternative to completely gutting a kitchen is an upgrade to the current design. Replacing dated appliances, refinishing cabinets, and changing out tile backsplashes are some cost-effective updates that can still modernize a kitchen and make it more appealing to buyers.

While 12% of realtors suggest that sellers completely remodel their kitchens, 57% have suggested a kitchen upgrade. Twenty percent of realtors have said a kitchen upgrade most recently helped complete a deal. In addition to the resale value, kitchen improvements can also help you enjoy your time in your home, with better functionality and livability cited by 29% of respondents as the most important result of their remodel.

Travelers want to help you protect the things that matter to you. We offer a wide breadth of products so you can be covered at home and on the road.

Bathroom Renovation

  • NARI’s cost estimate for the project: $35,000
  • REALTORS® estimated cost recovered: $20,000
  • Percent of value recovered from the project: 57%

Bathrooms are another place where a home can show its age, and potential buyers may hesitate at the cost and work involved in remodeling an outdated bathroom after buying a home. Still, while 33% of realtors have suggested sellers complete a bathroom renovation before completing a sale, only 4% said the project most recently helped them complete a deal.

New Bathroom

  • NARI’s cost estimate for the project: $60,000
  • REALTORS® estimated cost recovered: $30,000
  • Percent of value recovered from the project: 50%

A remodeling decision often driven by function rather than a desire to modernize, adding a new bathroom is nearly as expensive as completely remodeling a kitchen, but with less of a “wow factor” for potential buyers. With only 5% of realtors suggesting that sellers add a bathroom and only 1% saying the project most recently helped clinch a deal for them, this may be one project that makes more sense for homeowners planning to be in their homes for several years.

New Master Suite/Owners’ Suite

  • NARI’s cost estimate for the project: $150,000
  • REALTORS® estimated cost recovered: $75,000
  • Percent of value recovered from the project: 50%

The costliest project on the list, a new master suite or owner’s suite, is another project that may have greater value to you while living in the home rather than in making it attractive to future buyers. Sixty-five percent of respondents said they have a greater desire to be home since completing the project. Only 3% of realtors have suggested that sellers complete an owner’s suite before attempting to sell, and less than 1% said the project most recently helped clinch a deal for them.

Still deciding where to focus your budget for home improvement? Make a list of the reasons you’re considering each project, and be sure to consider the impact on your home insurance, too. Want to attract future buyers and increase the value of your home? Kitchens and bathrooms remain a good place to start. If you plan to remain in your home for a number of years, you may want to update a bedroom, add a bathroom, convert a basement to a living area or tackle any other project that will add to your own appreciation of where you live.

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Renovating Your Home to FORTIFIED Standards

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If you’re working on your home or putting on a new roof, consider renovating to FORTIFIED standards. Developed by the Insurance Institute for Business & Home Safety (IBHS), FORTIFIED Home™ construction practices are designed to help homeowners and communities better weather future storms, including hurricanes, high winds, hail, and severe thunderstorms.  Building codes set a minimum standard for construction techniques and materials. Building FORTIFIED means exceeding those requirements.

The goal of building FORTIFIED is to take action today to make homes and communities more resilient to natural disasters tomorrow. Using data from more than 20 years of storm damage, IBHS created a set of standards for new and existing construction that can be affordable and can be incorporated into your home’s building design.

If you’re working on your home or putting on a new roof, consider renovating to FORTIFIED standards. Developed by the Insurance Institute for Business & Home Safety (IBHS), FORTIFIED Home™ construction practices are designed to help homeowners and communities better weather future storms, including hurricanes, high winds, hail, and severe thunderstorms.  Building codes set a minimum standard for construction techniques and materials. Building FORTIFIED means exceeding those requirements.

The goal of building FORTIFIED is to take action today to make homes and communities more resilient to natural disasters tomorrow. Using data from more than 20 years of storm damage, IBHS created a set of standards for new and existing construction that can be affordable and can be incorporated into your home’s building design.

Three Levels of FORTIFIED Home Designations

  1. Bronze: As part of the bronze level, a wind-driven rain management system in the roof protects against water damage. It features ring shank nails to protect against wind uplift resistance, which provides double the strength of nails used on traditional homes. Another important technique is sealing the seams of your roof deck to prevent water intrusion from wind-driven rain.
  2. Silver: The silver designation adds features such as impact-resistant windows and pressure-rated doors to protect the home from flying debris in strong winds. 
  3. Gold: The gold designation focuses on creating a continuous load path by tying the roof to the walls, the walls to the floors, and the floors to the foundation to help make the home able to withstand hurricane-force winds.

Adding Value and Safety

After a certified, third-party evaluator verifies that the home meets FORTIFIED standards, you receive a certificate and a unique ID number valid for five years. The FORTIFIED designation helps show you have made consistent and defined structural updates to your home. 
To learn more, visit the IBHS website.

Learn more about homeowners insurance, or if you’re ready to take the next step, give us a Call or Text: 616-896-4600, and we will get you started!

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