Does home insurance cover the small home-based office?

SP Insurance 

How does 80% of New Zealanders’ office look like?

New Zealand’ national economy is shaped through its unique geography and population. As the economy is dominated by agriculture and animal husbandry industry, and a few large dairy companies dominate the market. However, major participators in the market are small businesses. Home-based offices or businesses are very popular in New Zealand. A family takes a space from home to form a business office. This method helps small business owners to save their operation costs and maximize current resources usage. This is also the main point of concentration for small business owners.

Does home insurance cover the small home-based office within the insured house?

The answer is yes, but there are some conditions. Only qualified health-care practice and home-based offices can be covered.

Although the health care practice is covered under the home insurance, due to the relevant laws of New Zealand, health related practitioners must have the relevant industry qualification to be the corresponding office or business venue. Otherwise, it cannot be covered by insurance.

For example, practitioners who start a dental clinic must be legal qualified as defined by the Health Practitioners Competence Assurance Act 2003.

Home-based office can only be used for corporate management, clerical or other professional purposes. Other commercial usage will be not covered. For example, the small accounting firm is covered by insurance.

Please be aware, any goods stored in the home office are not covered by the insurance. Goods for commercial use should belong to commercial insurance. Business owner should take responsibility for their goods. It is not a good idea to store them at home or office.


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