Home Owners Insurance for home based FFL

Home Owners Insurance for home based FFL

This is a discussion on Home Owners Insurance for home based FFL within the FFL Dealer Discussion forums, part of the Related Topics category; I'm in the research phase of applying for FFL. I am very happy that I found this forum! I currently have State Farm for both ...

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Thread: Home Owners Insurance for home based FFL

  1. #1
    New Member Array Joatman66's Avatar
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    Jan 2013

    Home Owners Insurance for home based FFL

    I'm in the research phase of applying for FFL. I am very happy that I found this forum!

    I currently have State Farm for both my home and an existing business (not firearm related). My agent tells me that State Farm does not offer coverage for anything dealing with firearms. I even inquired about getting an exclusion for my outbuilding that I intend to operate out of.

    Given that, if you are a home based, or even commercial based, FFL, what insurance company have you found coverage with?


  2. #2
    Senior Member Array DocT65's Avatar
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    May 2012
    Gulf Coast
    My understanding of FFL licensing was that one of the changes several years ago, along with significantly jacking up the fees, was that "home based" licensees were going to be phased out. The reasoning was the BATF wants you to have a real "storefront" and licensees that did not were felt somehow to be "less legitimate". You may want to see if this is the case before you invest a lot of effort into going through the motions.

    As to insurance, no tips there. I would think that you would need coverage with a company that handles lines that offer commercial coverage. This may get sticky in a "home" situation as well. A respected independent insurance agent would be a start. Good luck.
    "Better to be judged by 12 than carried by 6"

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  3. #3
    Distinguished Member Array kapnketel's Avatar
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    Sep 2009
    Northern Kentucky
    Talk to an insurance agent that is not dedicated to one of the carriers. He can explore the market and give you options.
    I'd rather be lucky than good any day

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  5. #4
    VIP Member Array Eagleks's Avatar
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    May 2008
    there are many that will insure firearms, etc....... ask the owners of local gun shops and/or other FFL's in the area as well.
    I don't make jokes. I just watch the government and report the facts. --- Will Rogers ---
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  6. #5
    Member Array pfries's Avatar
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    Dec 2011
    East TN
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    Mors est libertas


  7. #6
    Distinguished Member
    Array Blue Thunder's Avatar
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    Aug 2009
    Retired In the Gun Room
    I have an Umbrella Policy (Homeowners) that covers these issues including if I Blow away a BG so I can fight his family up to $$$ dollars that costs me less than $30 per month. Go find an insurance person that does that. I have insurance and Lawyers that will take care of "Street Scum" that may try to harm me in the process of when I shoot them down to the pavement where I then call for 911 to try to save their bleeding bodies kicked to the curb.
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  8. #7
    Distinguished Member Array onacoma's Avatar
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    Apr 2011

    Home Owners Insurance for home based FFL

    Try the NRA or NSSF as they would be able to direct you. NSSF membership is $75.00 annually.

    “It does not take a majority to prevail … but rather an irate, tireless minority, keen on setting brush fires of freedom in the minds of men!”
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  9. #8
    VIP Member Array Tubby45's Avatar
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    May 2005
    Making ammo.
    Quote Originally Posted by DocT65 View Post
    My understanding of FFL licensing was that one of the changes several years ago, along with significantly jacking up the fees, was that "home based" licensees were going to be phased out. The reasoning was the BATF wants you to have a real "storefront" and licensees that did not were felt somehow to be "less legitimate".
    Nope. Law remains unchanged. Fees haven't changed and "home based" FFLs aren't being phased out. The ATF can't do either of those, it has to be Congress that does it and there are no such bills to either effect. Think of an FFL as a "shall issue" business license. If you meet local, state, and federal qualifications based on current law, the ATF must issue you the FFL.
    07/02 FFL/SOT since 2006

    Probably the only home based FFL that doesn't do transfers.

  10. #9
    New Member Array WCGS's Avatar
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    Feb 2013
    West Alexander, PA
    Tubby45 is right.. I just received my FFL 01 for initially operating a home-based FFL transfer service with the business plan to expand to teaching NRA certified classes and selling special-order only gun sales.

  11. #10
    New Member Array Haze's Avatar
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    Aug 2008
    Upstate NY
    I started the FFL process last July and currently am still waiting for the NY Dealers License. The FFL is under a corporation and the corporate building is located on the same property as our residence. It has separate commercial insurance for another business that is housed in the same physical space. There are only a handful of companies in the US that will insure a gun business. Of 4 FFL's near me 2 don't have the correct insurance and know it. One of the 4 just abruptly closed their doors after what a customer stated to me they didn't know they could be sued if a BG uses a gun purchased from their store. I'm also hearing they had a serious problem along those lines. They had a booming business in a commercial location. Anyhow after a 45 day wait from submitting the application I finally signed with Joseph Chiarello for $1100 per year. This is a 2 million aggregate policy with 1 million per occurence. This is the minimum you should have to sell firearms in my opinion. A homeowners policy will not cover you for product liability when it comes to firearms. The NRA quoted me $4500 per year. You want to make sure you are insured properly and also protected by a LLC or corporation unless you don't mind having all your personal assests on the line. Most of the distributors I talked to are trying to push out home based FFL's. On all the applications they want your insurance company name, policy number, all your bank information and other trade contacts. Jerry's just raised their initial order to $5000 and Ellet Bros. is at $2500. Not only does the commercial insurance cover product liability but it also covers the usual things like slip and fall and other accidents when someone is on your property for business reasons whether a customer or a sales representative.

  12. #11
    New Member Array beardman's Avatar
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    Mar 2013
    Back to the OP, I have been going through the same process as you. I have called no less than two dozen different independent agents in addition to speaking to all of the major insurance companies. The only one that I have not heard back from yet is American National, the rep seemed to think it would not be a problem as long as I secured separate coverage for the business, but I do not have a final answer yet.

    Everyone else is not interested or states that it is against their policy or that they do not have a product that would suit me.

    I know there are thousands of home based FFL's, but I would bet that the majority of them operate under the don't ask, don't tell policy. If these businesses/people called their insurance and told them what they were doing, I am guessing they would be dropped.

    This is all in reference to the Homeowners policy specifically, not a commercial or business policy. I have made it crystal clear that a separate policy will be in place to cover both liability and property that will be primary to the homeowners.

    If anyone else has information that I am incorrect about or missing, I am sure that the OP and myself would both appreciate it!


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