Having a home business sometimes requires the owner to build a structural environment to operate from. This new environment may be part of the residence itself, like a finished office. Other times, it is located in all or part of a separate, detached structure.

Consider the following insurance needs:

• If built into your home structure: If the business space is built into your residence, you need only to raise your Homeowners coverage (Coverage A) on your home high enough to rebuild a new structure, including the cost to rebuild the business environment. Why? Because the Homeowners policy has no restrictions or limitations for any part of your primary residence structure used for business purposes. There are limitations on business personal property but not on the building itself.
• If built into a detached structure: If your business operates from a detached structure, the entire structure — not just the part used for business — is excluded from Homeowners coverage. Do two things for proper coverage:

Buy an endorsement allowing the business use.

Raise the detached-structure coverage (Coverage B) high enough to rebuild all detached structures on your lot.