This is defined under a homeowner policy to mean a full-time or part-time trade, profession, occupation, or activity engaged in for compensation. Business includes rental of all or any part of an insured location to others, or held for rental by you.
Many homeowner policies do allow some ventures for compensation coverage under the personal belongings provisions and liability portions of their policies.
Generally, you will find in your homeowner policy a section which refers to personal property and then within that section a subsection which gives the special limits of liability for particular items the insurance company wants to limit their exposure to. Among the other special limits you will find a limit on property on the residence premise used at any time for business purposes and specific amount covering business property away from the residence premise. This coverage is very limited, so it would be advisable to carry some type of business owner policy to protect yourself against a void in coverage.
Also, the liability coverage for a business being operated from your home should also be a concern for you to address. Example: you are a hair stylist with the capability to cut, style, wash, and dye a client’s hair. Your homeowner policy may cover the individual falling out of the chair or slipping on a wet floor, but will you have any coverage for the dye applied improperly burning the scalp or eyes of client? There is considerable difference between personal liability exposures and professional liability exposure.
This particular risk may require product and completed operation coverage as well as a professional liability coverage which no homeowner policy automatically. You may also need to have an Errors and Omission policy to cover you if you make an honest error or an omission which causes harm to a client.
You should feel free to review your business venture with your agent so he or she can advise you as to the proper type of policy or policies need to be considered.