Are Sheds Covered by Homeowners Insurance?
Navigate homeowners insurance for your shed. Discover how detached structures are covered, what perils apply, and vital policy nuances.
Homeowners insurance provides financial protection for your dwelling and personal belongings against various risks. This coverage extends to other structures located on your property, which can include sheds. Understanding the specifics of your policy, particularly regarding detached structures, is important for ensuring adequate protection for all elements of your home.
Understanding Other Structures Coverage
Most standard homeowners insurance policies, such as HO-3 and HO-5 forms, include coverage for “other structures” on your property. This component, often called Coverage B, protects structures not physically attached to your main house. Examples include sheds, detached garages, fences, gazebos, and mailboxes.
The coverage limit for other structures is set as a percentage of your dwelling coverage, which is the amount insuring your main home. This percentage commonly ranges from 10% to 20% of the dwelling’s insured value. For instance, if your dwelling is insured for $300,000, your other structures coverage might be $30,000. This coverage is a combined limit for all detached structures on your property, not individual structures. While this percentage is standard, it can be adjusted higher if the value of your detached structures exceeds the default limit.
Covered Perils and Common Exclusions
Other structures, including sheds, are covered for the same perils as your main dwelling. Common covered perils include fire, lightning, windstorms, hail, theft, and vandalism. Policies like HO-3 and HO-5 cover these structures on an “open perils” basis, meaning any cause of loss is covered unless excluded.
However, certain events are commonly excluded from standard homeowners insurance policies, including those affecting sheds. Exclusions include damage from floods, earthquakes, landslides, and other earth movements. Damage from general wear and tear, lack of maintenance, neglect, pest infestations, or mold is also not covered. For protection against excluded perils like floods, separate policies or endorsements would be necessary.
Factors Influencing Coverage and Property Protection
The way a shed is used can influence its insurance coverage. If a shed is used for personal purposes, such as storing gardening tools or as a hobby space, it falls under standard “other structures” coverage. However, using a shed for business operations, like manufacturing goods or operating an office, may lead to exclusions from a standard homeowners policy. In such cases, additional endorsements or a separate commercial policy may be required.
Contents inside your shed are covered under the personal property section of your homeowners policy, not the “other structures” coverage. This personal property coverage protects items like lawnmowers, tools, and garden equipment from covered perils. Personal property coverage has its own limits, often a percentage of your dwelling coverage. High-value items might require specific riders or endorsements for full protection.
To ensure comprehensive protection, review your homeowners insurance policy documents. These documents detail coverage limits, deductibles, and any applicable endorsements or exclusions for your detached structures and their contents. Consulting with your insurance provider can help clarify uncertainties and allow you to adjust coverage if current limits are insufficient for the value of your sheds and their contents.