Do I Need Other Structures Coverage on My Home Insurance?

Homeowners insurance protects your most significant asset through various components, each addressing specific risks. Among these, “other structures coverage,” often called Coverage B, protects property not attached to your main home. Understanding its function and assessing your personal need for it is important for comprehensive property protection.

Understanding Other Structures Coverage

Other structures coverage, or Coverage B, provides financial protection for structures on your property not physically attached to your main home. Anything connected to your dwelling, like an attached garage or deck, typically falls under your main dwelling coverage (Coverage A).

Examples of structures commonly covered under Coverage B include detached garages, sheds, gazebos, fences, and in-ground swimming pools. Driveways, mailboxes, and guest houses can also fall under this category. These structures are generally protected against the same perils as your main dwelling, such as fire, theft, vandalism, windstorm, and hail. However, standard policies typically exclude damage from events like floods, earthquakes, and general wear and tear, which would require separate policies or endorsements.

Deciding if You Need This Coverage

While other structures coverage is often automatically included in standard homeowners policies, homeowners should evaluate their personal need for it. Consider the presence and value of any detached structures on your property. Assess their replacement cost, even if you believe they are of low value.

Reflect on your financial capacity to repair or rebuild these structures out-of-pocket if damaged or destroyed. Without adequate coverage, the financial burden of replacing a detached garage or a substantial fence could be significant. Also, consider specific risks your property faces, such as frequent severe weather events, which could increase the likelihood of damage. Even smaller items like fences or driveways can incur substantial repair costs.

Determining How Much Coverage to Get

The coverage amount for other structures is typically calculated as a percentage of your dwelling coverage (Coverage A), often 10%. For instance, if your main dwelling is insured for $300,000, your other structures coverage might automatically be $30,000. This automatic allocation may not be sufficient for your specific needs.

To determine the appropriate amount, assess the replacement cost of each detached structure on your property. This involves estimating the current cost of materials and labor to rebuild the structure from scratch, rather than its market value or original purchase price. If the combined replacement cost exceeds the default percentage, you can typically request to increase your Coverage B limit. If you have very few or low-value detached structures, you might consider adjusting the limit downward, though many policies include a base amount that cannot be removed.

Integrating Coverage into Your Policy

Locating your current other structures coverage amount is straightforward, typically found on your homeowners insurance policy’s declarations page. This page, often the first one or two pages of your policy documents, summarizes your coverages, limits, and deductibles. Look for “Coverage B” or “Other Structures” to identify the allocated amount.

Deductibles generally apply to claims involving other structures, similar to your main dwelling. You will be responsible for a predetermined amount of the repair or replacement cost before your insurance coverage begins to pay. Regularly review your coverage, especially after making significant improvements, adding new structures, or if construction costs fluctuate. This ensures your policy accurately reflects your property’s current value and protection needs.