The 9/11 attacks chilled the Americans to the bone. The losses associated with the attacks awakened the country, and the insurance industry stepped up with the Terrorism Risk Insurance Act (TRIA) in 2002. What is TRIA? The Terrorism Risk Insurance Act was brought into force by the Congress in 2002, and acts as a federally backed reinsurance program. It originated as a short term solution that would help the insurance industry to recover after the September, 2011 attacks.
You might have set up a business in your home to generate surplus money for yourself. Yes, it's completely legal and you can have all the advantages that go along with it. Work on your own terms, don't need to be afraid of getting terminated at all, invest as much capital as you want etc. etc. But if you think that your home insurance is going to cover the risks for the business as well, you're absolutely on the wrong track.