What would happen if your home - and your home office - went up in smoke? Would you be able to replace your computer, printer, software and other home office equipment?

Before you answer yes, you'd be wise to check the limits and limitations on your home office insurance.

Many home insurance policies limit coverage for computer equipment, and don’t cover computer systems used in a home business at all unless you purchase an add-on policy called an endorsement or rider. Without the endorsement, if your home burned down, you would not be reimbursed for any of your home office losses.

Not all home office endorsements will cover your equipment in all circumstances, either. In fact many have some pretty severe limitations. For instance, if your computer is a notebook computer and you take it with you when you visit clients or travel, you may need a special policy to cover you for this purpose. Many riders that cover home office equipment don’t cover equipment that leaves your office. Plan ahead, check with a knowledgeable insurance agent and get the right protection for your needs.

Be sure to tell the agent if there is more than one computer in use in your home, too and ask her to find out whether the policy or endorsement she is selling you covers everything. Some riders will only cover one computer system in a home office. Double check and read the policy once you get it.

While you're asking about equipment coverage, ask about liability coverage for injury to business contacts coming to your home. Again, you may require an inexpensive endorsement to give you adequate coverage.

More: Does your home business need insurance?

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