The rules about whether you can operate a business from home is a
village ordinance issues. You have to check with your own town.
Many towns used to prohibit this, but as more and more people are
able to work from home in ways that do not disrupt the neighborhood,
many towns have relaxed that rule.
They haven't gotten rid of the rules entirely, because they want to
be able to stop people from having semi-trucks do deliveries in
front of their houses everyday, having events with 50 cars parked
out front. Generally you're not supposed to "change the character
of the neighborhood."
The other issue you've raised is insurance.
If you have a torch, and fail to share this with your
insurance company, and your house burns down, even if it wasn't the
torch's fault, the insurance company can cancel your policy because
As with most things, honesty is best.
Metalsmith, Certified PMC Instructor
Hard to Find Tools for Metal Clay