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If you are a self employed or self certified homeowner you may find that your home insurance premiums are higher than those people who work outside their home.

Confused.com has warned that, when carrying out risk assessments for home insurance premiums, insurance providers take many factors into consideration – one being the employment status of the homeowner. But another factor is how often the home is used.

Some may think that prices may be lowered as the home is occupied during the day, reducing the risk of burglary. The truth however, is an insurance provider perceives the likelihood of accidental damage occurring is far greater as the home is occupied at all times, thus affecting a premium. As homes have people in them all the time, accidents such as spillages, fire and escape of water is more likely to happen.

Darren Black, head of home insurance at Confused.com says: ‘With a house occupied for longer periods of time it is realistic for providers to perceive higher risks associated with this. It is paramount that the importance of paying premiums is not overlooked. As soon as you miss a payment, the policy is in jeopardy which could mean disaster should a major event such as flood or fire affect a home. Taking a chance, and leaving your home uninsured is very dangerous for those already strapped for cash."

If you are worried about how much you are paying out as a stay-at-home person, talk to a financial adviser. An adviser will be able to tell you if you are paying too much for a insurance premium and they will also show you where to look to find the best deal for your situation.

Even if it is pricier, you can never go without insurance. So whether you are self employed, freelance or a work-from-home businessperson, make sure all your premiums are up to date and cover everything you need.

SOURCE: Confused.com, 15/09/09

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