4 Types of Insurance You Need for a Home Gym

Having your own home gym can be a convenient way to skip the hassle of a gym membership and the commute. But building even a modest home gym isn't cheap -- and I'm not just talking about the cost of the equipment. For example, there's also any renovation costs you might have, like adding more comfortable flooring.

And then there's the insurance. Your new home gym may actually require some additional homeowners insurance (or renters insurance, if you don't own the property). Here are a few types of insurance to consider if you have a home gym.

Your home gym is for personal use

These are the types of coverage you'll need if you don't use your gym as a small business.

1. Personal property coverage

Coverage that protects your personal property is a standard part of pretty much any homeowners policy. In most cases, this should cover basic gym equipment, including machines like treadmills and stationary bikes.

However, the fancier your gym gets, the more coverage you may need. Most homeowners policies have a cap on property coverage.

Don't get me wrong, that cap is usually fairly high: 50% to 70% of your dwelling limit (what it would cost to rebuild your home). But if you have a high-end gym full of top-of-the-line equipment -- and a house full of equally high-end everything else -- you may need to look into adding to your policy.

You should also make sure your property coverage includes accidental damage. For instance, if you drop a heavy weight and damage your floor, some policies may help you repair it.

2. Injury liability coverage

One of the perks of having a home gym is you can invite friends over and work out together. Before you send out the invites, however, make sure you have some type of injury liability coverage in your homeowners or renters insurance.

Personal injury liability coverage is the part of your insurance that pays out if someone is injured on your property or from your neglect. Without liability coverage, if a guest is injured while working out in your home gym, you could be on the hook for the cost of their medical care.

We're all certain our friends would never sue us -- until they do.

Debt can drive a wedge in the strongest of friendships. Protect yourself -- and your friendships -- by having proper liability insurance coverage before letting your buddies on your bench press.

Running a small business from a home gym

If you use your home gym for business purposes, your regular homeowners insurance won't be enough to cover you, your equipment, or your clients. So if you're going to teach students or offer personal training services from your home gym, you're going to need to get appropriate business insurance.

3. General liability insurance

General liability insurance is the commercial version of the personal injury liability coverage that may come with your homeowners policy. Specific policies vary, but some of the perils typically included in a general liability policy can include:

• Bodily injury and property damage liability
• Personal injury
• Medical payments
• Advertising injury (copyright infringement)
• Reputational harm (libel, slander, etc.)

In other words, general liability insurance is what you'll rely on in the case that someone is injured in your home gym while you're offering professional services.

4. Commercial property insurance

The same way regular liability insurance won't cover business clients in your home gym, regular property insurance may not cover the equipment in a home gym if you use it for your business.

That's not to say homeowners policies won't cover any business property that is in your home. But typical residential property insurance will have a very low coverage cap -- a few thousands bucks, at best -- for equipment used by your business. A high-end treadmill could cap out your homeowners policy in and of itself, let alone any other piece of equipment you may own.

If you use your home gym for business, definitely consider a separate commercial property insurance policy. Make sure the cap is high enough to cover the replacement cost of all of your equipment.

Many insurance companies will bundle general liability and commercial property insurance for a lower price.

Good (financial) health includes insurance

Compared to all the sleek glass and metal, insurance is definitely not the sexiest part of a new home gym. That doesn't make it any less important, though. So make sure your gym has a healthy insurance policy -- just in case.