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Trading Shares at Home Can Void Your Home Insurance

Country Lad

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Increasingly, home insurance claims are being rejected because an activity is determined to be a business run from home. The classic examples were honesty sales of fruit on the footpath and a delivery truck parked at home overnight while the business was run from elsewhere. Insurance companies are saying these activities are running a business from home contrary to the home insurance policy so the claims for home damage, totally unrelated, were declined.

How does this affect us? Like me, many here are likely saying in their tax return that the share trading is a business to offset costs. Bingo - house insurance can be cancelled. I am not offering solutions, just making everybody aware.

ABC article
 

tech/a

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So If Im trading on my mobile phone then?

I trade 6 hrs week Futures and have a full-time business and place of work.
Think it would be case by case.
but typical of Insurance companies.

Happy to take premiums but will do anything to opt-out of Claims.
 
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Increasingly, home insurance claims are being rejected because an activity is determined to be a business run from home. The classic examples were honesty sales of fruit on the footpath and a delivery truck parked at home overnight while the business was run from elsewhere. Insurance companies are saying these activities are running a business from home contrary to the home insurance policy so the claims for home damage, totally unrelated, were declined.

How does this affect us? Like me, many here are likely saying in their tax return that the share trading is a business to offset costs. Bingo - house insurance can be cancelled. I am not offering solutions, just making everybody aware.

ABC article

It is fairly straight forward; doing anything at home that adds to a higher risk factor than the normal day to day residential living requires clarification with the insurance company.

This media fuss has started because what was once a small hobby at home has grown into a business, due to Covid.

One story I saw last week was a guy that, pre-covid, would go to peoples home to repair and service bicycles. Covid has changed his business, due to isolation rules he works on the bikes at home, and because travel stopped his hobby became a full time business servicing bikes.
the insurance deemed him high risk because the number of strangers attending his home to drop off and pick up, as well as the increase in tools and parts, and cash on premises.

Depending on the work someone is doing at home the insurance will assess the risk and increase the premiums accordingly.

trading shares from home would be a pretty low risk enterprise, unless you're advertising to the general public and strangers can see your making hundreds of thousands of dollars each week..
 

Value Collector

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Increasingly, home insurance claims are being rejected because an activity is determined to be a business run from home. The classic examples were honesty sales of fruit on the footpath and a delivery truck parked at home overnight while the business was run from elsewhere. Insurance companies are saying these activities are running a business from home contrary to the home insurance policy so the claims for home damage, totally unrelated, were declined.

How does this affect us? Like me, many here are likely saying in their tax return that the share trading is a business to offset costs. Bingo - house insurance can be cancelled. I am not offering solutions, just making everybody aware.

ABC article
When my insurer asked whether a business was being run from my home, I said yes and then described my investment operation and she said that was fine and didn't raise the premium, instead she lowered the premium in the contents and car insurance because "I worked from home"
 
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Given all the bad news stories about home businesses voiding your home insurance, those concerned should check with their insurer.

I think I read an article where a customer had his insurance cancelled when he enquired.

Better then than when you try to put in a claim.
 
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Given all the bad news stories about home businesses voiding your home insurance, those concerned should check with their insurer.

I think I read an article where a customer had his insurance cancelled when he enquired.

Better then than when you try to put in a claim.

His original insurance plan was canceled because he refused to take the new plan, which came with a major price increase.
 
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When my insurer asked whether a business was being run from my home, I said yes and then described my investment operation and she said that was fine and didn't raise the premium, instead she lowered the premium in the contents and car insurance because "I worked from home"
That's so nice of your insurer!

It's brilliant how the person you spoke to was across all the fine print in your policies PDS and was completely aware of all the terms and conditions, and how they related to your individual circumstances.

That's top notch service, IMO.

Can I ask, was the person you spoke to family, friend, acquaintance, siren etc ?

I rang my insurer (again) today, after already cancelling an auto renewal which they just seem to have ignored.... Insurers latest traps, policies that auto renew...with notice of course.
 

Value Collector

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That's so nice of your insurer!

It's brilliant how the person you spoke to was across all the fine print in your policies PDS and was completely aware of all the terms and conditions, and how they related to your individual circumstances.
I am unsure if she actually checked the PDS, but she did put me on hold and said she was checking with some one as to what the definition of home based business was (or what ever wording she used), as I said she did ask me to describe the nature of my business, she also asked a few questions to confirm that I wasn't having customers visit my house and I wasn't storing any stock etc




Can I ask, was the person you spoke to family, friend, acquaintance, siren etc ?
No, Just a random Youi worker
 
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So what about your basic wage or salary owner working from home ?
I'm not hugely keen on governments regulating things but I think this all gets a bit ridiculous really.

If someone's running an industrial business of some sort and they've got gas bottles, solvents, chemicals or whatever and they're using welders, grinders etc well then OK, that does have a risk of fire and so on.

If there are lots of people coming and going, say a hairdressing business, well then there's public liability.

But for anything which simply involves someone sitting at a desk using a computer and associated equipment well it's pretty hard to argue that constitutes a risk of significance. It's no different to a student working on a computer and it's no different to a retired person who'll quite likely be at home more. Income might be produced from it yes but the activity itself is very residential in its nature.

In the case of the latter, I see no legitimate reason why insurers ought have concerns. Office work of any kind be it for an employer, running your own business or whatever it's still just using a computer. My view is it ought be deemed as such officially.

Otherwise, well pretty much anyone could fall into a trap. Share trading, gambling if you're making a profit from it, working from home as an employee, someone like (say) an aspiring musician who plays their own original music and uploads it to YouTube, at the extreme well even a simple savings account if it pays interest and you access it from home. All are making money or at least attempting to. :2twocents
 
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I see these houses for sale in outer Sydney suburbs where home owners build a stand alone office in the granny flat space. If you want the decorations that go with the office, I guess the greedy insurer wants a cut of your in plain sight office along with the decorations out front, stating it's a business or maybe not?
 
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I see these houses for sale in outer Sydney suburbs where home owners build a stand alone office in the granny flat space. If you want the decorations that go with the office, I guess the greedy insurer wants a cut of your in plain sight office along with the decorations out front, stating it's a business or maybe not?

To be fair, it is not all greed from the insurers. They are running a business and trying to make profits.

Most homes have minimal foot traffic, and most of that is people that the owners know. Turn that into a backyard business and there are added liabilities. Depending on the business that could range from increase risk of break-ins and theft, personal injury claims, ear and tear on contents and fixtures. These are an added risk that the insurance company must consider and plan for.

If a homeowner is investing on the share market, planning their own Super and playing with their own finances, I don't see any problems that the insurance company would find that would require a premium increase. However, if that same homeowner is running a home office investment plan for family and friends, well that's a different matter.
 
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