Consider someone breaking into your home and making off with hundreds or thousands of dollars worth of property. Or how about a fire or storm destroying a home and most of its contents? Usually there’s no problem since a homeowners policy will handle such losses. However, if a significant amount of the property was stored for sale, that property may either only qualify for limited coverage or may even be ineligible for protection.
Similar considerations exist concerning legal liability. For instance, a visitor comes onto your premises and then fractures a leg and hip when tripping on an exposed tree root. Because she was old and frail, the injuries require surgery and a long rehab. The visitor sues you for hospital, surgery and other expenses. Normally one’s insurance policy would defend you against the lawsuit and, if necessary, pay any awarded damages. But what if, instead of a friendly visitor, she had come onto the property to look at items on sale? That could cause a serious coverage issue.
Determining factors for either property or liability coverage are how often sales occur and what income has been made over a period of time (usually the 12 months before the date of a loss). Depending on those details, the activity involved in the loss could be considered a business. In such instances, coverage may not exist under a basic homeowners policy.
If you have yard sales, you should check to see if their frequency and their sales volume create a need for additional protection, such as a form that covers home businesses.
One of our insurance professionals is in an ideal position to help you!