A friend of mine has a painting business and stores his ladders and other equipment in his garage. He's not incorporated and operates the business in his own name. The standard homeowner policy automatically insures detached garages however coverage for the garage may be excluded from the policy under certain circumstances. 'Business use' is one such circumstance.
Storing equipment owned by a business in a garage changes the 'use' of a garage from 'personal use' to 'business use.' One insurance company I represent will cover a garage if the business is in the homeowner's name but not if the business is incorporated or an LLC. Another insurance company I represent excludes building coverage for a garage if there is any 'business use.'
Similarly some auto insurance companies will refuse to pay for collision damage to an insured car if the car is driven by an undisclosed driver in the household. In other words, if the owner of the car never told the insurance company that her boyfriend was living with her and the boyfriend had an accident with her car the insurance company could refuse to pay the collision insurance. What a surprise that would be!
The 'take away' from this it two-fold:
1. Each company has its own forms and endorsements and they can vary greatly from company to company. Coverage offered by one policy may not be provided by another.
2. Call me whenever there is a change in condition or circumstances relative to your home, auto or business. Call me if you have a question or are unsure whether coverage is in place for a particular exposure. In most cases the coverage is already in place. A good time to get the answers to your questions is before your have a claim!
