If you've signed a contract to buy a house that will double as your place of business for your small in-home daycare center, it's time to get to work on getting everything that is required for you to have when it comes time to close on the purchase, which includes getting home insurance. Home insurance is a requirement of mortgage companies as well as a requirement for daycare licensing. Here are a few helpful tips to get you and your business covered.
Work With an Insurance Broker
Since your new home will also be your place of business, it's important to work with an insurance broker who can customize your home insurance and liability insurance policies to give you exactly what you need to protect your home and the daycare center you will operate in your home. By working with an insurance broker, you'll be able to not only get the coverage you need, but you may also be able to combine various other policies that you may have, such as automobile insurance.
Fully disclose to the insurance broker that you plan on operating a daycare center inside the home and inform him or her of all the necessary details of your business, such as your licensing and credential information, as well as the number of children you will have in your care and the age groups that you will provide care to. The reason for this is that some states and insurance companies limit the number of children that can be covered by home insurance policies.
Determine How Much You Can Afford for a Deductible
You can save money on insurance premiums if you are able to pay a higher deductible. Don't be tempted to take a higher deductible if you don't truly feel that you will be able to easily pay the higher amount out-of-pocket, especially since some claims could result in a legal requirement to close your daycare center, even if temporarily. Therefore, when calculating how much of a deductible you can afford to pay out-of-pocket, consider that you may not have an income coming in if something were to happen that could result in your daycare center being inoperable, such as if the water main ruptures and there's no running water or a tree branch crashes through the roof and leaves a gaping hole.
Speak with your insurance broker for more information regarding protecting both your new home and the business you plan on operating in your new home.
Share