Incidental Occupancy

Incidental occupancy can be found under the homeowner’s policy, which authorizes cover for business activities conducted on the resident’s premises.

Typically, it’s when a business is functioning in a home that is mainly used as a place of residence and without any other business activities being conducted on the same premises.

Clear guidelines detail the types of incidental businesses allowed to be conducted on-premises. Some examples of permitted companies include professional/business offices, instructional studios, and private schools.

Criteria:

The place you use should be operating for residential matters at least 50% of the time or more. It’s also okay if more than 50% of the compound square foot is devoted to residential purposes.

However, if it’s found that your dwelling is being used for business purposes over 50% of the time, it will not be considered incidental occupancy. 

The Covid Pandemic has shifted many people into working from home offices. In this case, it is good to contact your insurer and let them know.

Insight: If your property is being used for business more than 50% of the time, then regular business owner’s insurance is more suitable.

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