Other Structures Insurance, often found as part of a standard homeowners policy, protects structures on your property that are not attached to your home. This coverage helps replace or repair detached buildings and certain outdoor features after a covered loss. Understanding what this protection includes, how it stacks with your main dwelling coverage, and how to adjust limits can prevent unexpected expenses when disasters strike.
What Is Other Structures Insurance?
Other Structures Insurance, also called Other Structures Coverage, is designed to insure structures that stand apart from the primary dwelling. This is particularly important for homes with detached garages, sheds, guest houses, fences, and similar buildings. It is typically a part of a standard homeowners policy or an endorsement and is expressed as a percentage of the dwelling coverage limit. The category helps homeowners avoid paying out-of-pocket for rebuilding or repairing ancillary structures after a covered event.
What It Covers
The scope of coverage usually includes:
- Detached garages, workshops, and carports
- Sheds, barns, and other storage buildings
- Fences, gates, and arbors
- Gazebos, pergolas, and outdoor kitchens
- Guest houses, maid’s rooms, or in-law suites that are not attached to the main home
- Storage facilities and hobby sheds used for personal, non-business purposes
Coverage typically applies to direct physical damage from perils listed in the policy, such as fire, wind, hail, and vandalism. It may also extend to damage from internal causes like a structural collapse or a sudden peril that affects detached structures. Replacement costs are commonly used unless the policy states actual cash value. Always review the policy language to confirm the scope of perils and whether depreciation applies.
Common Exclusions and Pitfalls
Several common exclusions can limit or exclude coverage for other structures. Homeowners should be aware of these to avoid surprises:
- Vacant or unoccupied structures for extended periods may be excluded or have reduced coverage.
- Structures used for business purposes, such as a home office that is rented out, may be limited or excluded.
- Damage caused by neglect, improper maintenance, or ordinary wear and tear is typically not covered.
- Damage from floods, earthquakes, or certain earth movements often requires separate flood or earthquake insurance.
- Structural damage resulting from pests, mold, or vermin may not be covered without proper maintenance.
- Items permanently attached to the home, like a patio cover that’s considered part of the dwelling, may not fall under Other Structures Coverage.
Understanding these exclusions helps homeowners determine when a separate rider or a different policy altogether might be necessary. When in doubt, ask the insurer for a clear explanation of what is and isn’t covered for detached structures.
How Much Coverage Do You Have?
Other Structures Coverage is usually expressed as a percentage of the dwelling coverage limit. Common defaults range from 10% to 30%, with 10% being typical for many policies. For example, if the dwelling coverage is $300,000, a 10% Other Structures limit would provide up to $30,000 for detached structures. Some homeowners choose to increase this limit to reflect the replacement cost of detached buildings and fences on the property.
If the value of detached structures changes—due to added garage space, new fencing, or updated outbuildings—it may be prudent to adjust the coverage. It’s often wise to conduct a rough replacement-cost estimate for detached structures and compare it to current policy limits. An insurer may offer endorsements that tailor coverage to your property’s specific needs.
Adjusting and Increasing Coverage
To ensure adequate protection, homeowners can:
- Review the standard percentage and compare it with the market value of detached structures on the property.
- Update the policy after home renovations or new outbuildings to reflect higher replacement costs.
- Consider a separate endorsement if the value of detached structures is unusually high.
- Provide documentation such as photos, blueprints, and appraisal reports to support the value of detached structures.
When requesting increases, insurance agents may require an appraisal or a replacement-cost estimate. A higher limit can reduce the risk of underinsurance after a loss, though it also increases premiums slightly. Assessing risk factors like location, climate, and construction type helps in choosing an appropriate level of coverage.
Filing a Claim for Other Structures
In a covered event, filing a claim for Other Structures Coverage follows the same process as a dwelling claim: report the loss promptly, document the damage, and provide a repair or replacement estimate. The insurer will assess:
- The cause of the damage and whether it is a covered peril
- The value of the damaged structure and the cost to repair or replace
- Whether depreciation applies if replacement cost is not used
Keep receipts and records for repairs, and photograph the damaged area. If an incident involves multiple structures, identify which losses are linked to detached structures versus the primary dwelling to ensure correct processing. A detailed, organized claim packet can expedite settlement.
Tips for Homeowners
- Inventory detached structures: Create a list with approximate square footage, construction materials, and current condition.
- Be proactive about upgrades: Replacing a wooden shed with a more durable structure may affect replacement costs and insurance needs.
- Coordinate with lenders: Some mortgage agreements require specific coverage levels for outbuildings.
- Review policy annually: Changes in property value or new detached structures warrant a policy review.
- Document maintenance: Routine upkeep helps support coverage eligibility and reduces claim disputes.
Frequently Asked Questions
What counts as an other structure? Detached garages, sheds, fences, gazebos, guest houses, and similar buildings not attached to the main dwelling typically fall under Other Structures Coverage. Can I increase my limit beyond the default? Yes, most insurers allow endorsements or higher percentage limits to reflect the value of detached structures. Do I need separate flood or earthquake insurance for detached structures? Yes, for perils like floods or earthquakes, separate coverage is usually required since many standard homeowners policies exclude these events.