A cheap ring light shorted out and started a fire in my garage studio. It melted my setup: cameras, lights, PC, and soundproofing. Total loss: $45,000. I filed a claim with my homeowners insurance. They sent an adjuster who saw the green screen and said, “This is a commercial business. Claim denied.”
Key Takeaways
- Business Property Limitation: Homeowners policies cap “Business Property” coverage at $2,500 (usually). They won’t pay $45k.
- Commercial Use Exclusion: If the fire was caused by business equipment (the ring light), they can deny the entire fire claim, including the damage to the garage structure.
- Inland Marine / BOP: You need a Business Owners Policy (BOP) or an Inland Marine floater to cover professional gear in your home.
- Loss of Income: A BOP also covers “Business Interruption.” If you can’t film for 3 months due to smoke damage, it pays your lost revenue. Homeowners insurance does not.
The “Why” (The Trap): The $2,500 Cap
Read your Homeowners Policy Declarations.
“Special Limits of Liability: $2,500 on property, on the residence premises, used primarily for business purposes.”
That covers one MacBook. The rest is gone.
[IMAGE: Photo of a burnt desk with melted camera equipment]
The Investigation: I Called Them
I asked, “How do I insure my home studio?”
1. Lemonade (Renters/Home)
- The Verdict: Cheap, but limited. Even with “Extra Coverage,” they often exclude high-value electronics used for pros.
2. The Hartford (BOP)
- The Verdict: The solution. A Business Owners Policy covers the gear ($50k limit) AND the liability if a guest trips in the studio.
- Cost: ~$50/month.
3. Athos Insurance (Equipment only)
- The Verdict: Covers the gear perfectly, but doesn’t cover the walls or the lost income.
Comparison Table
| Feature | Homeowners Policy | Business Owners Policy (BOP) |
| Gear Limit | ~$2,500 | $50,000+ |
| Structure Damage | Maybe (if not excluded) | Yes |
| Lost Income | No | Yes |
| Deductible | $1,000+ | $500 |
Step-by-Step Action Plan
- Get a BOP: Call a broker. Tell them you have a “Home-Based Business.”
- Inventory Everything: Video walk-through of your studio. Save receipts to the cloud.
- Fire Extinguisher: Put one in the studio. It might lower your premium, but mostly it saves your house.
- Electrical Audit: If you have 5000 watts of light plugged into one strip, you are negligent. Hire an electrician to install proper circuits.
FAQ
Does the BOP cover my house too?
No, the BOP covers the business assets. You still need Homeowners insurance for the personal assets (kitchen, bed).
What if I rent?
Renters insurance + Inland Marine policy for the gear is a good combo.
Is the ring light manufacturer liable?
Yes. Your insurer will pay you, then subrogate (sue) the ring light company.