what you need to know
You’d think selling a few eggs at the front gate is harmless, right?
Turns out, for some Aussies, it’s been enough to void their home insurance.
A recent case in Victoria has put a spotlight on something most people with a side hustle have never thought about: whether your home insurance actually covers you if you’re running any kind of business from home — even if that business has nothing to do with the cause of a claim.
How the drama started
Victorian homeowners Justin Uebergang and Verity Metcalfe learned this the hard way. An electrical fault caused a fire that destroyed their home. The issue? Their insurer rejected the claim because an ABN was registered to their address.
No business was running inside the home, and the fire had nothing to do with the business — but because they hadn’t told the insurer about the ABN, the policy was considered void.
The couple assumed it didn’t matter. The insurer said it would never have offered the policy had it known.
And suddenly, a devastating fire turned into a legal battle.
Others are now realising they may be in the same boat
After the story hit the media, more people started checking their policies — and some discovered their insurance had quietly become a problem:
- A mobile bike repair business registered to a home address
- A couple who parked their food truck at home but never cooked there
- A pensioner selling eggs at the gate
None of these situations feel risky… but what matters is how your insurer assesses it.
Side hustles are on the rise — so this matters
With rising costs, more Australians are picking up extra income streams.
ABS data shows over 165,000 new businesses were registered last year — and most were simple, one-person operations.
And then there’s the millions of us who have worked from home over the last couple of years. The good news? Working from home for your employer is treated differently — but if you’re a sole trader or running your own gig, the lines can blur pretty fast.
So what actually counts as “running a business from home”?
Consumer advisers suggest insurers usually look more closely if your home-based business:
- Makes or sells products
- Uses specialised tools or machinery
- Involves higher-risk activity (e.g. food prep, heat, chemicals)
- Has customers visiting the property
Small home offices that take up less than 20% of your home, with no visitors coming and going, may be seen as lower risk — but again, every insurer is different.
The golden rule: tell your insurer
The Insurance Council of Australia says it clearly — no matter how small or harmless your side gig seems, declare it. Every insurer has their own risk rules, and what doesn’t matter to one might be a big issue for another.
Many people took out their home insurance long before they ever dreamed of a side hustle, so it’s easy to forget what was originally declared. Some insurers are now calling out this issue in their renewal notices, but the responsibility still sits with you.
And don’t forget other types of cover
If you’re operating a business from home, even a tiny one, you might also need to think about:
- Public liability
- Product liability
- Professional indemnity
- Small business insurance packages
These can protect you for risks that home insurance never covers.
Where to from here?
The legal case is ongoing, and it has even caught the attention of independent senator David Pocock, who has asked the government to take a closer look.
For now, the takeaway is simple — if you have a side hustle, a hobby-turned-income, an ABN, or anything resembling a business at home… give your insurer a quick call. It could save you a major headache later.
