What Does Other Structures Insurance Cover in Home Insurance Policies

Other structures insurance is a crucial component of home insurance policies, and it's essential to understand what it covers.

This type of insurance protects detached structures on your property, such as a garage, shed, or fence.

A detached garage, for instance, is a common example of a structure that's typically covered under other structures insurance.

Other structures insurance can also cover fences, which are an essential part of your property's appearance and security.

The coverage amount for other structures is usually a percentage of your home's insured value, typically ranging from 10% to 20%.

Your standard homeowners policy will typically cover not only your home's primary structure but things attached to it, such as a garage, front porch, patio or deck, etc. If a structure is detached but still resides on the property, it may be covered by your other structures limits instead.

Other structures on your property are usually covered for the same disasters that your house is, including fire, hail, wind and vandalism. Most homeowners policies cover your house and other structures on an "open perils" basis, meaning that as long as your policy doesn't specifically exclude a given problem, it's covered.

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Some examples of covered structures include fences, detached garages, gazebos, sheds, carports, guest houses, and barns. If you have a detached garage, other structures insurance will help pay for the cost of rebuilding it if it's damaged by a fire or other covered peril.

Here are some examples of covered perils:

Other structures coverage is typically 10 percent of the dwelling coverage amount listed on your homeowners insurance policy. For example, if your home is insured for $300,000, other structures would be listed at $30,000 on your homeowners insurance policy.

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Other structures in home insurance are defined as anything not attached to the home but on your property. This can include a variety of structures, such as fences, detached garages, and sheds.

A standard home insurance policy may be sufficient to cover your other structures, but if you have several, you might need to increase your coverage. The cost of coverage will depend on the type of structure and its value.

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Some examples of other structures include:

Other structures insurance may also cover a swimming pool, but it's worth checking with your insurer to confirm. Some companies include an in-ground pool under dwelling coverage instead of other structures, especially if it's attached to your home by a walkway or enclosure.

Your standard homeowners policy will typically cover not only your home's primary structure but things attached to it, such as a garage, front porch, patio, or deck, etc.

Other structures on your property are usually covered for the same disasters that your house is, including fire, hail, wind, and vandalism. Most homeowners policies cover your house and other structures on an "open perils" basis, meaning that as long as your policy doesn't specifically exclude a given problem, it's covered.

If you don't have Other Structures coverage and your detached garage is damaged by a fire, for example, the insurance company will not pay to repair or rebuild it.

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A few examples of covered structures include fences, detached garages, gazebos, sheds, carports, guest houses, and barns.

Homeowners insurance covers other structures under the dwelling coverage aspect of your policy, protecting against damages due to fire, lightning, vandalism, falling objects, unexpected water damage, and car collision.

If eligible structures are damaged or destroyed by a covered peril, your homeowners insurance policy's Coverage B will generally help repair or replace them up to your policy's coverage limits.

Here are some examples of damages that other structures insurance may cover:

Outdoor fixtures and furniture are typically not covered under homeowners insurance, unless specified in a commercial policy or Builders Risk policy.

Some policies may exclude coverage for detached garages unless they have a specific limit listed for Other Structures on the Declarations page or Evidence of Insurance.

The Outdoor Fixtures and Furniture Exclusion Endorsement explicitly excludes coverage for outdoor furniture and fixtures, regardless of the cause of damage.

Appliances used for refrigerating, ventilating, cooking, dish washing, or laundering are also excluded under this endorsement.

Coverage B for Other Structures excludes attached decks, patios, and even your home's roof, in addition to detached structures.

Other structures coverage excludes normal wear and tear, damage caused by excluded perils, and damage from pests and rodents.

If you don't have Other Structures coverage and your detached garage is damaged, the insurance company will not pay to repair or rebuild it.

Some properties have significant secondary structures, such as mother-in-law suites, which may require additional coverage.

A deductible may still be applied, leaving you to pay for damages out of your own pocket.

Typical examples of other structures covered under homeowners insurance include fences, detached garages, gazebos, sheds, carports, guest houses, and barns.

However, some accessory dwelling units, like guest houses and tiny homes, may be excluded from Coverage B if they are rented out or used for business purposes.

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The policy defines "Covered Property" as the building or structure described in the Declarations, including completed additions. This means that if you have a commercial property with outdoor fixtures, they are likely covered under your policy.

The policy also includes equipment used to maintain or service the building or structure, such as fire extinguishing equipment. This coverage extends to personal property owned by you that is used for these purposes.

The amount of other structures coverage you need can vary greatly depending on your specific situation. You may want to consider increasing your coverage limits if you have a structure on your property that is worth more than your current limits.

For example, if you have a large detached garage with indoor plumbing and electricity, you may want to speak with your insurance agent to discuss increasing your separate structures coverage. A standard homeowners policy typically includes coverage for other structures at 10 to 20 percent of the dwelling coverage on your policy.

This amount is usually part of the policy whether you have detached structures on your property or not. However, this default amount may not be right for you, and you should consider adjusting it based on your specific needs.

Here's a rough estimate of what your other structures coverage might look like based on your dwelling coverage:

Keep in mind that this is just a rough estimate, and you should consult with your insurance agent to determine the best coverage for your specific situation.

Commercial Policy Coverage is a crucial aspect of protecting your business.

Your building, including completed additions, is considered covered property under a commercial policy.

Fixtures, including outdoor fixtures, are also included in the definition of covered property.

Equipment used to maintain or service the building or structure, such as fire extinguishing equipment, is also covered.

If not covered by other insurance, additions under construction, alterations, and repairs to the building or structure are included in the policy.

Materials, equipment, supplies, and temporary structures within 100 feet of the described premises are also covered.

Remember to check your policy for specific language regarding your covered property.

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Damage to small items, such as a lawn mower, may only cost a couple of hundred dollars. However, the cost of damage to larger structures, like a detached garage, can start at around $5,000 and go up from there.

The cost of damage can vary greatly depending on the complexity of the structure. For example, if a secondary living structure on the same plot burns down, the cost to tear it down and rebuild can be a staggering $70,000.

If you're not covered under other structures insurance, you may be responsible for footing the entire bill. This is why it's so important to review your policy and consider adding coverage for any secondary structures on your property.

Here are some estimated costs of damage to other structures:

Damage costs can be significant, and it's essential to understand what you're up against. The cost of damage to small items like a lawn mower can be relatively low, around $200 or less.

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However, damage to larger structures like a detached garage can start at around $5,000 and go up from there, depending on the complexity of the structure.

One painful instance of under-insurance is when an investor had to foot the entire $70,000 bill to tear down and rebuild a secondary living structure after it burned to the ground in an electrical fire. This could have been avoided if the investor had added coverage for the building under Other Structures.

The cost of damage can be reduced by having the right insurance coverage, such as Other Structures coverage, which can protect you from financial losses in case of damage to additional structures on your property.

Here are some estimated costs of damage to different structures:

Keep in mind that these are just estimates, and the actual cost of damage can vary widely depending on the specifics of the situation.

ACV vs RCV is a crucial consideration when it comes to other structures coverage in your policy. If your policy is based on actual cash value (ACV), depreciation and wear and tear can affect your claim payout amount.

Filing a claim for a 20-year-old shed that needs to be rebuilt due to a fire, for example, may only result in a payout for the value of the aged shed. This means you'll be left with a significant shortfall to cover the cost of rebuilding.

Replacement cost value (RCV), on the other hand, pays you what it would cost to build a new shed, regardless of the actual value of the burned building. This can provide more robust financial protection, especially for older structures.

If you built that shed 20 years ago for $3,000, but now it will take $15,000 to rebuild, then you would get a check for $15,000 (if that amount doesn’t exceed the coverage limit of your other structures coverage) minus your deductible.

Other structures insurance is a crucial part of a homeowners policy, and it's essential to understand what it covers.

Coverage B, which is often automatically included in most homeowners policies, offers protection for structures not directly attached to the home. These can include things like sheds, gazebos, pools, guest houses, and casitas.

Other structures insurance coverage is usually set to 10% of your home's dwelling coverage limit, but this can be adjusted higher or lower if needed, which may also affect your premiums.

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