If you work from home then you will need either extended cover on your buildings and contents insurance or a specialist home business insurance policy. This is because you will be exposed to situations which are not covered by the average homeowner's insurance policy. The nature of your business will also come into play - if your business is largely sedentary and does not involve clients visiting your home then, generally, it will be easier, and cheaper to obtain home business insurance. If you store stock on your premises then this will entail greater risks and a different policy, tailored to home business insurance.
Home Insurance
consists of Buildings and Contents Insurance. Each is available
separately or as a combined policy. Buildings Insurance covers the
full or partial rebuilding of your home and the replacement of
fixtures when damaged by insured events. If you have a mortgage,
the lender will usually require you to have this insurance
protection. Contents Insurance covers anything you are likely to
take with you when you move home such as furniture, furnishings,
household equipment, paintings, etc.