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Home studio

My studio is set up in my house and I was recently advised that
this may not be legal AND that if anything were to happen to the
house i may not be covered by my insurance 

Can’t help on the legal bit but, in the UK at least, one of the
tick-boxes on the home insurance form is an assurance that you’re not
running a business from home. Better check your policy and have a
word with your insurer - you may just have to pay a bit extra to be