How Working from Home Affects Your UK Home Insurance: What You Need to Know

As working from home becomes increasingly common in the UK, many people are unaware that it can have implications for their home insurance policy. Whether you’re full-time remote, hybrid working, or running a business from your spare room, it’s vital to understand how your cover may be affected — and what you need to declare to your insurer.

In this guide, we’ll explain how working from home impacts home insurance, what activities may need to be declared, and how to avoid invalidating your policy. We also cover tips for keeping costs down and securing the right level of protection.

Why Working from Home Affects Insurance Policies

Your home insurance policy is based on how your home is used. A change in your daily activity — such as working from home — may alter the risk profile of your property.

Key reasons working from home can affect your policy:

• Increased use of equipment (e.g. laptops, printers, dual monitors)

• More visitors (e.g. clients, deliveries for business purposes)

• Higher occupancy (someone being home during business hours)

• Running a business from home (especially where stock is kept or services are provided)

These factors can impact both contents insurance and buildings insurance, depending on the nature of your work.

What You Must Declare to Your Insurer

Not all home working needs to be declared, but many types do — especially if it involves more than just sending emails or using a company laptop.

You typically need to notify your insurer if:

• You run your own business from home.

• You see clients or customers in person.

• You store stock, tools, or specialist equipment at your property.

• You make or sell goods from home (e.g. candles, cakes, crafts).

• You operate machinery or hazardous materials.

• Your work increases foot traffic to your property.

Failure to declare relevant changes can invalidate your insurance — meaning you may not be covered in the event of a claim.

For clarification, visit the Financial Ombudsman which provides guidance on disputes relating to home working and insurance.

What If You’re Employed and Just Using a Laptop?

If you're an employee working remotely on a company laptop, your insurer may not require any changes to your policy — but you should still check.

Most insurers do not need to be notified if you:

• Do not meet clients in your home

• Do not keep stock or materials

• Are covered by your employer’s liability or equipment insurance

To be safe, check the FAQs or policy documents on your provider’s website or contact them directly.

Additional Cover You May Need

Depending on your work setup, you may need to consider additional forms of cover beyond standard home insurance.

Types of cover to consider:

• Business Equipment Cover – Protects your own or your employer’s items such as laptops, monitors, printers.

• Public Liability Insurance – Essential if clients visit your property.

• Product Liability Insurance – If you manufacture or sell products.

• Employer’s Liability Insurance – Required if you employ staff, even part-time.

• Professional Indemnity Insurance – If you give advice or offer professional services.

Some providers may offer business add-ons to your existing home insurance policy, which can be more cost-effective than buying a standalone business policy.

Check if your current provider offers a flexible policy or look for specialist insurers through MoneyHelper.

How to Reduce Home Insurance Costs When Working from Home

Working from home doesn’t always mean higher premiums — in fact, being at home more can deter burglary and reduce some risks.

Tips to keep costs down:

• Notify your insurer accurately – Transparency prevents claim refusals.

• Shop around annually – Use comparison sites and specialist brokers.

• Avoid over-insuring – Don’t guess the value of contents or stock.

• Secure your property – Install approved locks and alarms.

• Bundle policies – Combine home and business cover if possible.

Read our guide on: Cheapest Ways to Compare Insurance Deals Online

Read our guide on: Annual Home Insurance Review Checklist

A Unique Consideration: Hybrid Workers and Multi-Property Insurance

If you split your time between two properties (e.g. a main home and a second residence used for part-time remote working), you may need to inform insurers of both.

Some insurers require dual-home policies or specified named locations for business activity, especially if you take equipment between addresses.

What Insurers Typically Cover – and What They Don’t

Here’s what’s usually included and excluded when working from home under standard UK home insurance:

Often covered:

• Office work using a computer or phone

• Employer’s equipment (in some cases)

• Limited visitors (e.g. postal deliveries)

Often excluded:

• Commercial stock or inventory

• Business-related liability

• High-risk or manual work (e.g. welding, carpentry)

• Clients visiting regularly

• Income loss due to business interruption

Always read the policy wording. For definitions and legal context, refer to the FCA Register.

When to Consider Switching Insurers

If your current insurer cannot accommodate your home working setup, it may be time to switch to one that specialises in blended home-business policies.

Look for:

• Home insurance with business extensions

• Flexible cover for freelancers and sole traders

• Customisable public liability and product cover

Use comparison tools and consult trusted brokers. You can also use the MoneyHelper Budget Planner to see how insurance costs fit into your wider budget.

FAQs: Working from Home and Home Insurance

Do I need to tell my insurer I’m working from home?

Yes, especially if you’re self-employed, running a business, or regularly see clients. If you’re employed and just using a computer, many insurers won’t require notification — but it’s always best to confirm.

Will my premium go up if I work from home?

Not necessarily. In some cases, being home during the day reduces the risk of burglary or damage. However, if your business increases risk or traffic to the property, your premium could rise.

What happens if I don’t inform my insurer?

Failure to notify your insurer about relevant work activity could result in a claim being denied or your policy being cancelled.

Is my work laptop covered under my home insurance?

Possibly. If it’s owned by your employer, it may be covered under their business policy. If it’s your own, check whether it’s included under contents cover or whether you need a business add-on.

Can I claim for business interruption under home insurance?

Typically, no. Business interruption is usually excluded from standard home policies and requires separate business cover.

Are part-time businesses like selling crafts on Etsy covered?

You’ll need to declare this, especially if you store stock, have visitors, or generate notable income. Not all insurers will cover this, so a specialist policy may be required.

Final Thoughts

Working from home offers flexibility and convenience, but it also introduces changes that could impact your home insurance — often in ways that aren’t immediately obvious. Whether you’re a full-time remote employee, a freelancer, or running a home-based business, it’s crucial to understand your insurance obligations and ensure you’re properly covered.

Take the time to review your current policy, speak with your provider, and explore tailored insurance solutions if necessary. Being proactive not only protects your property and income but also gives you peace of mind in the event of an unexpected claim.

Remember, the goal is to ensure that your insurance reflects how you actually use your home. Transparency now can prevent major financial headaches later on.

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