I am a hobbyist wildlife photographer. I have $20,000 of gear insured on my Homeowners policy. I sold one print for $200 last year to a friend. My house was burglarized, and my gear was stolen. The adjuster found my SmugMug website where I list prints for sale. “This is business property,” she said. “Your policy has a $2,500 limit for business property.”
Key Takeaways
- The $2,500 Cap: Most homeowners policies limit “Business Personal Property” on the premises to $2,500. Off-premises (e.g., in your car), the limit is often $500 or $1,500.
- The “Business” Definition: Insurers define business very broadly. “Any trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis.” Selling one print counts.
- Material Misrepresentation: If you failed to disclose the business use, they can void the coverage entirely, not just cap it.
- The Fix: You need a “Business Pursuits” endorsement or a separate commercial policy.
The “Why” (The Trap)
The trap is “Income Generation.”
You think: “I’m not a pro, I don’t make a living from this.”
The Insurer thinks: “You solicit money for photography. Therefore, the risk is higher (you take gear out, you have clients). We didn’t underwrite that risk.”
Once you have a website with prices, you are a business in the eyes of an adjuster looking to save money.
The Investigation (My Analysis of Transitioning)
I checked when you cross the line.
State Farm
- The Policy: Standard homeowners has a business limit.
- The Fix: Personal Articles Policy (PAP). This rider usually covers the gear even if used for business, provided you tell the agent. It costs more, but it works.
PPA (PhotoCare)
- The Sweet Spot: Included with PPA membership (~$300/year). It covers up to $15k of gear. Perfect for the “Semi-Pro” who creates income but isn’t a full studio yet.
Lemonade (Renters)
- The Verdict: Strict. If you use it for business, their standard electronics coverage usually excludes it. You need their specific “Extra Coverage” for cameras, and verify business use is allowed.
[IMAGE: Screenshot of a policy document highlighting “Special Limits of Liability – Business Property: $2,500”]
Comparison Table
| Status | Homeowners Policy | Business Endorsement | Commercial Policy |
| Pure Hobby | Full Coverage | N/A | N/A |
| Sold 1 Print | Capped ($2.5k) | Full Coverage | Full Coverage |
| Shoot Weddings | Denied | Maybe (Check limits) | Required |
| Cost | Included | +$50/year | +$300/year |
Step-by-Step Action Plan
- Audit Your Online Presence: If you have a “Book Me” or “Store” page, you are a business.
- Call Your Agent: “I occasionally sell prints. Does this change my coverage limits?”
- Buy a Floater: A Personal Articles Floater is the best bridge. It covers the specific items regardless of use (usually), but verify.
- Join PPA: For $28/month, you get $15k insurance. It’s the cheapest safety net for emerging pros.
FAQ
Does Instagram count as business?
If you have “DM for rates” in your bio, yes.
What if I donate the money?
Then it’s a hobby/charity. But keep records.
Does this affect liability?
Yes. If a client trips at your home studio, homeowners liability denies it. You need business liability.