Hi Virge -
I was at the same talk, and as a result finally got around to talking to
our insurance agent in early January. Our homeowner's policy is carried
through State Farm. I found that:
1) if there's a fire in our house, our homeowners would only cover up to
five thousand dollars for computer and other certain types of equipment.
That would cover the first computer that the rest of the family uses.
2) beyond that, if any items destroyed or stolen were used for business
purposes (which they would determine by looking our tax return -
amortization schedules, plus deductions for business use of the home),
those items would not be covered at all.
Any accountant or lawyer would probably tell you that it's not a bad
idea to get business coverage from the standpoint of justification of
your existence to the IRS (as if the county assessments, telephone, etc.
I have to pay to not make any money aren't enough!)
Since I also deduct my SCUBA and camera equipment, those items needed to
be covered as well - I was more concerned about theft while traveling -
or equipment being eaten by sharks, that sort of thing).
As for original pieces of art, I believe you can set a value on those,
if you want to pay the premiums for that. For myself, whatever I have
that isn't replaceable has been photographed and/or scanned (high res),
and any transparencies or discs are kept in the saftey deposit box.
It's hard to believe that Allstate doesn't provide business coverage!
You could call an "independent" agent, who would probably have more
knowledge as to what companies would cover home business property and
I carry thousand dollar deductible, which makes my premiums more
affordable, and have the company take automatic deductions monthly from
my bank account (no service charges to do that) so that I don't have to
be reminded that I don't like having to carry the policy (for all my
stuff it amounts to about $110 monthly).
If I were you, I would first check into what of your business property
would be covered by your homeowners, and then go from there. Then you
need to make a list of all the stuff you use and would want covered,
with their purchase dates and prices, current values, etc. This is a
ROYAL pain in the you-know-what (I won't say it again) and took me a few
days to do, because I hadn't been particularly good about keeping up
with that stuff over the years other than to just throw it in various
file boxes - plus there was some personal property that was converted to
business use, so it maent looking up serial numbers (oh yeah, that, too,
has to be done).
A hassle? Definitely. Worth it? Yes, to me.
That's all I can think of, now - I'm sure there's more, though.
Hope that helps,
> Does anyone carry business or commercial insurance to cover their home
> studio? This topic came up at the Santa Cruz meeting during Marc Paisin's
> talk - I remember that a couple of people said they had it. Does anyone know
> where to get this type of insurance? My Allstate agent said that they don't
> supply this sort of insurance as it a specialized item. Also, that a rider
> attached to my policy would only cover up to $10,000 (and be costly) and
> with original artwork stored at home that was an issue as to how much of it
> would be covered.
> Any information on this topic would be greatly appreciated!
> Virge Kask, Illustrator
> Envision Resource
> 4800 University Drive, # 12-L
> Durham, NC 27707
> Phone: 919-490-1533
> FAX: 919-403-7578
> Email: [log in to unmask]
> "Long trip......small steps"
Richland, WA 99352
(509) 627-0703 (business)
(509) 627-0751 (fax)