Building a Home Gym? Make Sure Your Homeowners Insurance Covers This

In all the fun and bustle of comparing shopping equipment and designing your perfect home gym, it may not occur to take time to consider your homeowners insurance. This could end up being a costly mistake. Before you start buying and building, make sure your current policy has your home gym -- and its expensive equipment -- covered.

Personal property insurance protects pricey equipment

Alright, so if you have a frugal home gym with some affordable basics, you probably don't need to worry too much about property insurance. But if you're the type of enthusiast who has dropped thousands on a stocked home gym, you're really going to want to make sure your homeowners or renters insurance policy has a robust amount of personal property coverage.

Unless exercise/fitness equipment is specifically excluded for some reason (I haven't personally seen this), it should be covered under most standard personal property policies. However, it's still worth scanning your policy to ensure there are no surprises.

When you need extra property insurance

The total amount of property you can get reimbursed for will be limited by your policy. While these limits can be quite high, they're not infinite. If you own a lot of high-end and/or specialty workout equipment, you could be pushing the limits of your policy without even realizing it.

If you're worried about the value of your home gym exceeding your coverage, ask your insurance agent about adding to your policy.

Accidental damage

Another bit of fine print to verify is what sorts of accidental events are covered. Particularly strict policies may specifically list covered events -- sometimes referred to as "named perils" -- and won't cover anything not listed.

This could bite you in the behind in the case of accidental damage from your home gym. For example, if you drop a heavy weight and damage your flooring, or if an improperly installed pull-up bar rips out some drywall.

Look for "open perils" or "all perils" coverage. This type of coverage will have a specific list of exclusions, and it will be more likely to offer coverage for events not on the no-go list.

Don't forget liability if working out with friends

We all like to think we'd ever end up in legal trouble with a former friend. But if the worst happens and a workout buddy gets injured in your home gym, the fallout could be damaging to your friendship -- and your finances.

Personal injury liability coverage can help pay for the medical bills should someone wind up injured on your property. It can also help cover legal fees if you wind up sued over the incident.

Make sure you read through any fine print on your liability coverage carefully. Some policies may only cover injuries on fitness or exercise equipment if you have certain safety measures in place.

Trainers will need business insurance, too

If you're using your home gym for business, you need to get proper business liability and property insurance. (And yes, this applies no matter how robust that business may be. Even if you don't think your little side hustle is much of a business, your insurance company very likely will.)

Most homeowners policies have strict limits on how much business property they'll cover. Given how pricey a decent machine can be, your home gym will likely exceed those limits and then some. Commercial property insurance can ensure you aren't out of luck if the worst happens to your equipment.

Similarly, the injury liability coverage of your homeowners policy probably won't apply if someone is injured in your home gym while you're offering professional services. Instead, you need to pick up a general liability policy meant for small business owners.

Many insurance companies will offer tailored coverage specifically meant for people in the wellness and fitness industry. These bundled packages may offer better rates than more general business insurance policies.

Whether you're using a home gym just for yourself, sharing with friends, or putting clients through their paces, make sure you have the right insurance coverage. It's always better to have it and not need it than the other way 'round.