Some small business owners in Texas use their homes for business, especially during the quieter winter months. They might use a garage as a workshop or a spare room as an office, expecting home insurance to cover all of it. But that’s not always true. The Texas homeowners policy Form B mainly covers your home as a personal living space, and when it’s used for work, things can get tricky. Winter damage like frozen pipes, burst heaters, or power issues can quickly reveal gaps in coverage. Let’s explore what this policy covers, where it might fall short, and how small businesses can prepare before January.

What a Form B Policy Usually Covers

The Form B policy is common for Texas homeowners, covering standard risks but only for personal use. It typically covers:

• Property damage from causes like fire, wind, or certain water damage

• The main structure of your home, often based on replacement cost

• Other buildings on your land (like sheds or detached garages), usually based on actual value

However, items used for work, such as tools, office gear, or inventory, may not be fully covered, and limits may apply to non-household contents. If your laptop or business supplies are kept at home, you might lack the protection you assume. Home insurance through Navigant Insurance can be tailored to protect your house, belongings, liability, and even extra living costs if you must relocate after a covered loss.

Overlooked Gaps for Home-Based Businesses

It’s easy to overlook that business use requires specific coverage. If clients visit or business equipment is stored at home, gaps can arise. Common blind spots with a Form B policy include:

• Business property, like supplies or machines, might be underinsured or not covered

• Personal liability may not cover injuries to business visitors

• Lost income from business interruptions isn’t included

These gaps may not be apparent during quiet times but become clear when damage occurs, especially as increased traffic and risk during winter add pressure. For multi-use homes, we can offer policies that better reflect how each space is actually used.

Mixing Personal and Business Use: What That Changes

Mixing personal and business use changes how insurance works. A garage with tools, a guest room doubling as a shipping hub, or a living room hosting client meetings can all affect your policy. Problems can occur if changes are not documented or managed with proper add-ons:

• Converting a personal space to work may lead to denied coverage

• Major upgrades for business use, such as extra wiring, may require separate coverage

• Renting or using part of your home for business can alter your policy’s application

Insurance companies focus on how space is used, not just its appearance, so business use might fall outside a standard homeowners plan.

What Winter Weather and Seasonal Claims Reveal

Texas winters, though not snowy, bring their own challenges, particularly in December and January. Cold weather can expose weak spots in a building and add stress for home-based business owners. Common winter issues include:

• Frozen pipes or roof problems damaging areas where business items are stored

• Electrical fires from space heaters or overloaded outlets not fully covered if business use is detected

• Increased foot traffic from deliveries or seasonal setups raising risk

During winter, short-term help or extra gear can heighten these risks, and if a policy doesn’t account for such activity, claims may not be fully paid.

Who to Check With Before Assuming You’re Covered

Before assuming you’re covered, talk with someone who understands both personal and business insurance. Sometimes, riders or extra protection can fill the gaps without needing a whole new policy. Consider checking in before:

• Converting a room to an office or workshop

• Purchasing new business equipment for home use

• Allowing business visitors or deliveries

Reviewing your policy yearly, especially before the new year, allows smart updates before business picks up. An agent can review add-ons for higher limits and discuss options for risks like flooding, earthquakes, or identity theft alongside your current coverage.

Start the New Year With Solid Coverage

Many small businesses in Houston and Texas use their homes for work to save money and boost efficiency. But the line between personal and business coverage can blur. As January approaches and business picks up, review your coverage to match your actual space use. While the Form B policy may seem sufficient, a closer look can ensure you’re truly protected. A bit of planning now can make the upcoming season smoother and safer.

Additional Considerations

Even if your home feels comfortable and secure, it can help to take a step back and look at your insurance setup from a broader view. Sometimes, the difference between feeling safe and unexpectedly facing problems comes down to details that are easy to overlook. Many homeowners assume that their standard policy covers every part of their life under one roof. In reality, when work and home mix, even small changes can lead to big gaps in coverage.

Taking the time to review all aspects of your insurance can make a big difference. Look closely at how each room in your home is used and note any modifications you have made. If a spare room is now used as a workshop or you have added extra equipment in your garage, these shifts might mean that your existing policy does not offer complete protection. Simple updates to your documentation or policy can sometimes save you from major issues later on.

It is also wise to consider the impact of seasonal changes. When the weather turns colder, risks such as frozen pipes or heating-related issues can create unexpected challenges. A small leak or a burst pipe in a space where you store business equipment can quickly escalate if your coverage does not reflect its business use. Reflecting on these possibilities gives you a chance to request a review of your current plan before those risks become a reality.

Taking these extra steps might seem like extra work, but understanding every detail of how your home is used and how it connects with your business is a smart move. A careful review ensures that even minor changes, from rearranging furniture to adding new work tools, are accounted for in your insurance plan. This proactive approach helps keep your home and business safe throughout the year.

About Ricky Wong

Ricky Wong has over 20 years of experience helping people understand their coverage beyond the fine print. Leading our team at Navigant Insurance, he has a background in both commercial and personal insurance and knows how business and home policies can overlap unexpectedly. We help individuals and families across Houston spot gaps in everyday coverage, whether your business is new or evolving with the seasons.

Many business owners in Houston, TX, don’t realize how limited a standard Texas homeowners policy Form B can be when it comes to business tools, supplies, or visitors. At Navigant Insurance, we always take a closer look at how each space is used, especially during high-risk seasons like winter. Making a few smart changes now could help prevent bigger issues down the road. Give us a call to discuss your setup and make sure you have the coverage you need.