Working from home is more common than ever. Across New York City, Westchester County, and Fairfield County, thousands of professionals now run their businesses from apartments, houses, or co-working spaces. But while your setup may feel secure, your homeowners policy may not protect your business property.
If you use computers, tools, or inventory for work, those items are considered business personal property (BPP). Most homeowners policies exclude or severely limit coverage for these items. That means your business could be at risk without commercial protection.
What Is Business Personal Property?
Business personal property (BPP) refers to the items you use to operate your business. These can include:
- Computers and laptops used for client work
- Desks, chairs, and office furniture in a home office
- Cameras, tools, or specialized trade equipment
- Inventory or materials stored for client projects
- Equipment used on job sites or in the field
If you rely on it to do your job, it’s business property. The key distinction: once property is tied to income-generating activity, it no longer falls under standard homeowners coverage.
A freelance marketing consultant in Brooklyn uses a $3,000 laptop, dual monitors, and professional software to serve clients. Without business property coverage, a theft claim could be denied under a homeowners policy.
Why Homeowners Insurance Isn’t Enough
Most homeowners insurance policies have limits or exclusions that make them unsuitable for business assets:
- Coverage for business property is often capped at $2,500 or less.
- Equipment used off-site (like laptops taken to client meetings) is usually excluded.
- Claims tied to revenue-generating use are commonly denied.
That means if your gear is stolen, lost, or damaged, you may have to replace it out-of-pocket.
- NYC: Freelancers in apartments often rely on expensive laptops or design tools. Theft or fire losses may not be covered.
- Westchester: Consultants running firms from home may have $10,000+ invested in technology and office setups.
- Fairfield County: Trades and creatives often store high-value gear in garages or basements, where water or theft risks are higher.
Why Tri-State Area Business Owners Need Business Property Insurance
Fairfield Photographer:
A photographer stores $10,000 in camera gear at home. After water damage, the homeowners insurer denies the claim because the equipment is used for business. A commercial property policy would have covered the loss.
Yonkers Landscaper:
A landscaper loses $6,000 in tools in a garage break-in. The homeowners policy excludes equipment tied to work use. Business personal property coverage would replace the tools.
Brooklyn Designer:
A freelance designer’s $4,000 MacBook is stolen during a client visit. Because it was used for business, the homeowners insurer denies the claim. A business policy with off-premises coverage would respond.
White Plains Therapist:
A therapist running sessions from home experiences fire damage that destroys confidential client files and office furniture. Business personal property insurance helps with recovery.
Stamford Musician:
A professional musician stores instruments at home and uses them at paid gigs. When instruments are stolen from a car, homeowners insurance denies coverage. Business coverage would protect against this scenario.
Who Needs Business Property Insurance?
If your business relies on physical items, you should consider coverage. Common examples include:
- Consultants and Professionals – laptops, printers, and office setups for client work
- Tradespeople – tools, ladders, and job-site equipment stored at home
- Freelancers and Creatives – cameras, recording equipment, instruments, or art supplies
- E-commerce Retailers – stored inventory awaiting shipment
- Service Providers – mobile devices, POS systems, or traveling toolkits
If losing a single item (like your laptop or toolkit) would stop you from earning income, that item should be covered under a business policy.
What Does Business Property Insurance Cover?
Business personal property policies typically cover:
- Fire, theft, and vandalism
- Weather damage, such as wind or burst pipes
- Loss during transport or client visits
- Damage in storage, whether at home or in transit
- Replacement of equipment, tools, or inventory
Policies can be tailored with two valuation methods:
- Replacement Cost Value (RCV): Replaces items with new, equivalent equipment.
- Actual Cash Value (ACV): Pays the depreciated value of the item.
Local Considerations in NYC, Westchester, and Fairfield
- New York City: Many freelancers and independent contractors operate from apartments or co-working spaces. Landlords may require proof of business coverage for liability and property.
- Westchester County: Professionals often run consulting firms or service businesses from home offices with high-value equipment.
- Fairfield County: Seasonal and mobile businesses—landscaping, photography, music—often move equipment frequently, making off-premises coverage essential.
Can You Add Business Property to a BOP?
Yes. Business personal property is usually included in a Business Owner’s Policy (BOP), which also bundles:
- General liability insurance
- Commercial property insurance
- Business interruption coverage
For many small businesses, a BOP is more efficient than buying standalone coverage. However, if you only need to cover equipment or tools, standalone business property coverage may be enough.
How Much Does Business Property Insurance Cost?
Premiums vary based on:
- Value of your business property
- Type of work you perform
- Coverage limits and deductibles
- Location and security features
Many small businesses secure coverage starting around $300–$500 annually, though costs increase with high-value tools, electronics, or inventory.
FAQs: Business Property Insurance for Home-Based Businesses
What is business personal property insurance?
Business personal property insurance covers the tools, equipment, and inventory you use for work. This includes laptops, cameras, furniture, or trade gear used in your business. Unlike homeowners insurance, which typically excludes work-related items, business personal property coverage ensures your essential equipment is protected against fire, theft, or damage whether stored at home, in transit, or at a client site.
Does homeowners insurance cover business property?
In most cases, homeowners insurance does not fully cover business property. Standard homeowners policies cap coverage at $2,500 for business-related items and often exclude equipment used outside the home. This means laptops, tools, or inventory tied to your business may not be protected if stolen or damaged. Business property insurance provides the coverage gap homeowners policies leave behind.
Do I need commercial property insurance if I work from home?
Yes. If you rely on equipment, inventory, or tools for income, commercial property insurance is essential. Working from home does not automatically extend homeowners coverage to business assets. Business property insurance ensures that you can replace items quickly after a fire, theft, or loss, so your business operations are not interrupted. This protection is especially important for freelancers, consultants, and tradespeople.
How much does business property insurance cost?
The cost of business property insurance depends on the value of your equipment and inventory, your industry, and your location. Many home-based professionals pay between $300 and $500 annually for coverage, though costs may increase with high-value items or specialized tools. Choosing the right deductible and coverage limit helps balance affordability with protection. An advisor can help customize coverage to fit your needs.
Can I add business property coverage to a Business Owner’s Policy (BOP)?
Yes. Business personal property coverage is usually included in a Business Owner’s Policy, which also bundles general liability and commercial property insurance. For many home-based businesses, adding coverage through a BOP is more cost-effective than buying standalone policies. If you only need protection for equipment or inventory, standalone business property insurance may be sufficient, but a BOP offers broader protection and flexibility.
How Refine Risk Helps
At Refine Risk, we work with professionals and small business owners across NYC, Westchester, and Fairfield County to:
- Identify equipment, tools, and inventory at risk
- Choose appropriate limits and deductibles
- Bundle business property into a BOP when beneficial
- Ensure clear separation between personal and business coverage
- Provide certificates of insurance when required by landlords or vendors
If you work from home, your business property may not be covered by your homeowners insurance. From laptops to landscaping tools, anything used for work should be protected intentionally. Commercial property insurance or a Business Owner’s Policy ensures your equipment, inventory, and tools are covered against theft, fire, and other risks.
Contact Refine Risk today to discuss business property coverage for your home-based business in New York, Westchester, or Fairfield.