kinipela Posted August 8, 2007 Share Posted August 8, 2007 I'm brand new to all of this, but want to make sure I'm fully covered before I even hand out a tester melt/tart to my own mother to test. I've done searches on this forum, but either I missed it, or no one's asked it (which I find hard to believe)... I plan on doing the insurance through the Soap Makers Guild (yes, I will be doing soaps too), but how does that work with your homeowner's insurance? Do I have to let them know that I'm doing this, even with the other insurance? What's the possibility they'll drop me? We live on acreage and they do cover our horses.... so I'm hoping they'll be ok with this? Hubby thinks I'll be fine doing it without the expense of insurance, hassle of taxes/dba/tax id etc, but after reading some of the posts here... I'd rather have the insurance and if I don't do well with the candles/soaps, then I just don't continue any of it. Quote Link to comment Share on other sites More sharing options...
MissMary Posted August 8, 2007 Share Posted August 8, 2007 Yes, yes and possibly.Your insurance through SMG will not cover your home. If you catch it on fire with business equipment, or even if the delivery guy slips delivering a business package, your HOI will not cover it, because they'd consider that a business insurance issue.It's a possibility they will drop you if they find out anyways, especially if someone makes a claim. Then you're screwed both ways.It's also possible your HOI company will have a 'piggyback' insurance program for at home businesses and the cost is based on your expected income with it. It could be very minimal but will cover anything that happens.They might also be able to recommend other companies who can offer a low cost premium to carry with theirs.If they don't, then inform them you'll be getting another policy with someone else to cover the business end and do just that. They might request a faxed copy over stating that you got insurance, but it's definitely better than losing everything. Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 8, 2007 Author Share Posted August 8, 2007 So if I'm reading your reply correctly, I'd need the SMG insurance, and an additional rider from my HOI company to be completely covered? Quote Link to comment Share on other sites More sharing options...
cbv1 Posted August 8, 2007 Share Posted August 8, 2007 I called my homeowners insurance company when I first started selling soap, and they didn't offer coverage for my home business (soap, bath & body). At that time Soap Makers Guild didn't offer insurance, so I got mine at RLI @ Home Business. My policy is $210 a year, which I renewed. Now that Soap Makers Guild offers insurance when joining, I will join and get this additional coverage. So, my advice is to talk with your insurance agent first to see what they have to offer. Then check out RLI @ Home Business along with what is offered when joining The Soap Makers Guild. I don't have enough funds to join the Guild yet, but hopefully I will next year. Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 8, 2007 Author Share Posted August 8, 2007 I checked out their website, and it won't work for me "Candle Sales, excluding sales of candles made by individuals" Quote Link to comment Share on other sites More sharing options...
cbv1 Posted August 8, 2007 Share Posted August 8, 2007 Ah yes, I don't make candles so RLI @ Home Business doesn't cover candles. But the Soap Makers Guild does right? I would think their coverage is pretty good. Otherwise you have to get insurance through a business insurance company. My homeowners insurance company referred me to a business insurance company. They sent me a huge packet of info and quite a few forms to fill out... I didn't like the person I was dealing with at that company so I opted for RLI. If you belong to the Guild they should send you a copy of the insurance coverage. Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 8, 2007 Author Share Posted August 8, 2007 I don't belong to anything just yet SMG does cover candles according to their site, as long as you sell soaps as well. I read through the info on their site, but it just gave me a headache...If my hubby gets home early enough tonight, I'll have him call our insurance guy and see what he has to say. And make sure he emphasizes that no candle making has occured yet, in case he freaks about it... It's just so confusing, I don't want to get in trouble if something does happen and risk losing the house/horses/etc. But I don't want to spend a fortune either just getting started at something that might not even work out. Quote Link to comment Share on other sites More sharing options...
TeriM Posted August 8, 2007 Share Posted August 8, 2007 your homeowners will not cover any business conducted out of your home... now that being said.. there are companies who will allow you to run a business out of your home and provide coverage which would be included in your homeowners... just depends on the business... just so your warned... you do need to let you agent know... but don't be surprised if they non renew your policy when the time comes.. not all companies do this... but some do.... Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 8, 2007 Author Share Posted August 8, 2007 just so your warned... you do need to let you agent know... but don't be surprised if they non renew your policy when the time comes.. not all companies do this... but some do....Wonderful. Our vehicle insurance is with them too. If that happens, hubby will certainly put a stop to the candle business. Quote Link to comment Share on other sites More sharing options...
SoyCandleQueen Posted August 8, 2007 Share Posted August 8, 2007 I called our home/auto insurance place and he told me we could add a policy to our homeowners insurance and it would only go up an extra $100 a year. HTH.Dawn Quote Link to comment Share on other sites More sharing options...
TxSioux Posted August 9, 2007 Share Posted August 9, 2007 I have coverage w/ State Farm & they will cancel your policy if they know you're making candles/soap in your home. They also have a 'secret' list of 7 breeds of dogs that, if you own & they know about, will cancel your policy. Susan. Quote Link to comment Share on other sites More sharing options...
ScentsandMore Posted August 9, 2007 Share Posted August 9, 2007 I just wanted to add that you need to be careful because when I first started out I read several times that if your home owners insurance finds out you are making candles in your home they will drop you. Good luck. Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 9, 2007 Author Share Posted August 9, 2007 They also have a 'secret' list of 7 breeds of dogs that, if you own & they know about, will cancel your policy. I can think of 4 off the top of my head. We have one of those breeds, and our insurance agent told us, "It's a mix breed, right?" Hubby said, "No... she's purebred." Agent said, "No... she's a mix breed, right?". So yes, she's a "mix". I did call another agent last night, just to get a reaction, without alarming ours about something I might do, and they said it's up to the underwriters. So what if you get a candle kit from Michaels, do people call their agent and let them know? I doubt it... Quote Link to comment Share on other sites More sharing options...
roady Posted August 9, 2007 Share Posted August 9, 2007 I just wanted to add that you need to be careful because when I first started out I read several times that if your home owners insurance finds out you are making candles in your home they will drop you. Good luck.I've been working in the insurance field for 7 years now and just wanted to put my 2 cents in. The only way an insurance company can deny coverage for anything at all is if they have specifically excluded that peril in your policy. Dig out your policy and read the exclusions. IF the home business is an exclusion, well..... ya better check on some new insurance real quick like because if your house burns down you will not get one cent. If it is NOT an exclusion they will have to pay but don't be surprised if you get a notice in the mail telling you they will not renew your insurance next term. Then you get to carry that "claim" around with you while insurance shopping for the next 3 - 5 years depending on the company.However, a lot of companies have an endorsement that you can pay extra for to add the home based business coverage on there. It all depends on the certain company and what their guidelines are. All companies are different. Read your policy!HTH,Chantel Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 9, 2007 Author Share Posted August 9, 2007 Thanks Chantel, that does help. I'll do that.My husband is most concerned with the idea that if we call our agent and ask, they'll put a red flag on our account. We talked about it last night, and he doesn't think it's worth the risk. I don't know. I'm going to make a few things, see how I like it. IMO, if I'm trying things out, how is that any different from buying a candle from a craft fair, not knowing how it's going to be? For right now, as long as I'm not actually selling anything, or giving items to people to test, and it's just for ME, it should be ok.... right? Quote Link to comment Share on other sites More sharing options...
roady Posted August 9, 2007 Share Posted August 9, 2007 Thanks Chantel, that does help. I'll do that.My husband is most concerned with the idea that if we call our agent and ask, they'll put a red flag on our account. We talked about it last night, and he doesn't think it's worth the risk. I don't know. I'm going to make a few things, see how I like it. IMO, if I'm trying things out, how is that any different from buying a candle from a craft fair, not knowing how it's going to be? For right now, as long as I'm not actually selling anything, or giving items to people to test, and it's just for ME, it should be ok.... right? MOST agents will not call their underwriting department and tell them that you called and asked about the candle business in your home. They would rather get the commission when your renewal rolls around than have the UW department nonrenew your insurance because you "might" be making candles in your home to sell. However, if part of the agents pay is based on Loss Ratio, he could start asking questions. It really depends on the individual agent. He may be hungry for the renewal commission or he may be one of the anal ones that reallllllllly watches his insureds. I would say that if you are making a candle for yourself, it would be fine. People make crafts everyday. However, if they find out that you are selling them and it's an exclusion, there wont be any coverage. I don't think I've been much help because companies are different as well as agents beliefs but if I was in your shoes.... I would call around to OTHER companies and get quotes and let them know up front about the candle business in your home. That way you know up front if it would be covered with them and not wonder after you've wrote the policy. Call an independant agency. They have several different companies to quote with.HTH!Chantel Quote Link to comment Share on other sites More sharing options...
TeriM Posted August 9, 2007 Share Posted August 9, 2007 I have coverage w/ State Farm & they will cancel your policy if they know you're making candles/soap in your home. They also have a 'secret' list of 7 breeds of dogs that, if you own & they know about, will cancel your policy. Susan.now here's what's funny... it must depend on what state your in because my business policy is with State Farm... now that said... it's not rated right - reason I know that is I'm an agent and have been in the business for almost 20 years... not my job to tell him... different agents handle business different... the ones that don't tell their companies always end up paying in the long run... it will come back to bite you in the butt.... Quote Link to comment Share on other sites More sharing options...
Georgia Posted August 10, 2007 Share Posted August 10, 2007 I have State Farm also for my home and car. I couldn't find anyone to cover the business (I make candles) and I was nervous about calling my agent - what if they cancel me? Well, they wouldn't ensure the business because I use heat to make candles. I told them I use more heat to cook (and am worse at that than candles) and they've insured my home for years! They recommended another agent in the area that could get me covered. I now have my business insurance through another company and still have State Farm for my home and car. Quote Link to comment Share on other sites More sharing options...
kandlekrazy Posted August 10, 2007 Share Posted August 10, 2007 I have coverage w/ State Farm & they will cancel your policy if they know you're making candles/soap in your home. They also have a 'secret' list of 7 breeds of dogs that, if you own & they know about, will cancel your policy. Susan.This is really funny because my candle business insurance is with State Farm! It costs me $250. a year to cover it all including $1 mil in liability. My business is in AZ, I don't know if the state makes a difference in whether they'll cover you or not. Quote Link to comment Share on other sites More sharing options...
TxSioux Posted August 10, 2007 Share Posted August 10, 2007 It may very well be that State Farm has new policies & I should have given my experience as something I haven't looked into recently. We've owned our home for 8 yrs & I've made candles for 6yrs. I apologize for making a broad-sweeping statement that I haven't looked into for a number of yrs. Still, I wouldn't offer any information or ask my agent any questions that could cause my policy to be flagged or dropped.Susan. Quote Link to comment Share on other sites More sharing options...
kinipela Posted August 10, 2007 Author Share Posted August 10, 2007 We looked at our policy last night. It says we can do a private garage, school, office or studio, but they won't cover any other business. And if it's on a "saddled animal", they won't cover it. I'm reading that as I can do an "intro to horse care" class and they will as long as none of my horses are saddled. But anyways, sounds like this particular policy as it is right now won't cover it without something additional. Which is good to know. So I'm going to make some things (not to sell) and see how this goes, then if I truly want to pursue it later, I'll definitely get insurance and take it from there. Thanks everyone! Quote Link to comment Share on other sites More sharing options...
Meridith Posted August 10, 2007 Share Posted August 10, 2007 It may very well be that State Farm has new policies & I should have given my experience as something I haven't looked into recently. We've owned our home for 8 yrs & I've made candles for 6yrs. I apologize for making a broad-sweeping statement that I haven't looked into for a number of yrs. Still, I wouldn't offer any information or ask my agent any questions that could cause my policy to be flagged or dropped.Susan.I have State Farm for my home, car and business. We put our insurance on for the business about 2 years ago. At first we were afraid to ask because I didn't want my car & homeowners to be flagged or dropped. But the insurance premium through another company was killer so I eventually asked my SF agent. He sent an underwriter out to my shop to see my operation and I was approved - no problem at all. I am wondering if this policy to not insure candle businesses isn't state specific since I've read on here another time about someone that said that State Farm would not insure their business either and yet I had absolutely no problem getting them to add my business. Or it could be that I was able to get insurance no problem because my business is not in my home and that perhaps could be the difference. Just a guess. Quote Link to comment Share on other sites More sharing options...
TeriM Posted August 10, 2007 Share Posted August 10, 2007 It may very well be that State Farm has new policies & I should have given my experience as something I haven't looked into recently. We've owned our home for 8 yrs & I've made candles for 6yrs. I apologize for making a broad-sweeping statement that I haven't looked into for a number of yrs. Still, I wouldn't offer any information or ask my agent any questions that could cause my policy to be flagged or dropped.Susan.Only problem with that is if you don't say something and you have a claim... your going to be dropped anyway... since you've been making candles for 6 yrs I'm guessing you have a good amount of supplies and inventory in your house... if something were to happen you wouldn't get a dime for any of it... just something to think about ! Quote Link to comment Share on other sites More sharing options...
MissMary Posted August 11, 2007 Share Posted August 11, 2007 The reason State Farm may insure one person and not the other in another state is because they may not be licensed to underwrite a home candle business in one, not the other.I hope that makes sense! Quote Link to comment Share on other sites More sharing options...
mizbizzyb Posted August 11, 2007 Share Posted August 11, 2007 I have coverage w/ State Farm & they will cancel your policy if they know you're making candles/soap in your home. They also have a 'secret' list of 7 breeds of dogs that, if you own & they know about, will cancel your policy. Susan.My coverage is thru State Farm - it went thru underwriting and was official within 3-4 days I believe.When we bought our 2nd home, they asked if the candle business was going to be transferred or stay at the other. I told them it was going where I was (lol - I don't think our tenant would like me coming and going making candles) and they said cool.Never had an issue. I got my policy early 2005. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.