Working from home or running a business from home...

...what's the difference?

I ponder it every year when it comes to renewing my house insurance and the form always asks if you run a business from home. I've seen it said before that as childminders we're working from home, not running a business from home, but what is the difference?

I suspect you need to declare it as running a business from home, then call the insurer for details.

Most insurers will then refuse to renew, charge more for the same policy, or offer a different, more expensive policy. But at least you’re still covered that way. If you don’t declare it, you could be considered to be making a false declaration, in which case you’re completely wasting your money because it could invalidate the policy (but you don’t get the premiums refunded) sho7ld you ever have to make a claim.

Some policies are specifically designed for CMs. Others accept CMing as a home-based business, but allow it (at a higher cost.) but in both cases you do have to declare you’re doing it.

It’s annoying. We used to get a reasonably good deal on home and contents through Mrs bunyip's 'proper job' staff benefits scheme, bu5 it didn’t cover CMing. Had to switch to a new insurer and the premium just soared.

I should phone your insurer to discuss your options.

I always phone to do my renewal, just to be on the safe side!

Rather than being specifically insurance related, my question was more wondering why some people say we're not running a business from home (which I assumed we were), but that we're working from home (which I assumed to mean that your work is based elsewhere, but you're doing your work at home).

I've seen people querying covenants on their homes that say they can't run a business from the premises or landlords refusing to allow childminding from a property as they can't have a business run from there. The advice given is always that childminders aren't running a business from home, they're working from home. I've never understood the logic (or legal basis) behind it.

Ah, I understand now.

I would say we’re running a business from home.

You’d need someone who says we’re not to answer the question.