Homeowners insurance is designed to cover the Dwelling, other structures, and personal property at an insured location. A home insurance policy is then customized for the particular needs of the owner or inhabitants of the property. In essence, a standard homeowner's policy is not a single policy but a combination of coverages bundled into one insurance premium. It is not intended to cover the needs of a business, and would require you to add additional policies into your total insurance bundle.
Bundling insurance policies together saves you money. Statistically, the risk of having to pay a claim decrease as the number of policies held by an individual increase. By bundling multiple coverages together, you save money on the bundle because the insurance company is facing lower risk. Adding a Business Owners Policy to the bundle will give your home business the insurance it needs at a lower cost than buying it elsewhere.
A BOP will cover any equipment or inventory you keep on the property. It also includes general liability to protect you and your business against injuries or damages related to the operation of your business, and any litigation arising out of covered incidents. By law, you are allowed to claim a portion of your home as your business location, and the amount you claim is what should be covered by your BOP, along with company-specific property.
Bundling your home and business insurance together at one location will save you money in covering the property and dwellings, because you will not need to duplicate the coverage in one policy with the coverage in another policy. Your home policy will cover the portion of the dwelling and other structures used by the family, and your BOP will cover the portion used exclusively by the business.