I run a small online shop selling vintage watches and I keep about $40k of inventory in a locked cabinet at my apartment. My homeowners policy has a sublimit for business property, but I'm not sure if it's enough or if I even need separate coverage. Anyone dealt with this? I'd rather not pay for a full commercial policy if I can avoid it.
Home Business
Should my company insure high-value inventory stored at home?
Don't mess around with watches. One break-in, one burst pipe, and you're wiped out. Get a separate rider or a standalone policy, and mmake sure it covers theft and mysterious disappearance, not just fire.
Have you actually read the sublimit on your homeowners policy? Usually its like $2,500 for business property. That's not going to cut it for $40k.
Rent a safe deposit box at a bank. Cheaper than insurance and you don't have to worry about your roommate's sketchy cousin.
No roommates, but I do have a dog. Safe deposit box isn't practical for shipping though. I need to be able to pull items to photograph and mail.
Also check whether your homeowners insurer will even allow business inventory. Some will will drop you if they find out. Better to be upfront and get a proper policy.
Following. I sell handmade jewelry and have been wondering the same thing.
Check if you can add a business property endorsement to your homeowners instead of a whole new policy. My agent did thqt for my camera gear side gig. Cost like $200 a year for $25k coverage.
Also think about whether your lease or HOA allows business use. If not, your insurer might deny a claim even with a policy.
OP, you mentioned shipping. Does your liability cover items in transit too? That's a separate can of worms.
Good point on transit. I usually use insured mail, but maybe I should look at a broader policy that covers inventory at homme and in transit. Thanks for the input, everyone.