Does Homeowners Insurance Cover Fences?

Homeowners insurance provides financial protection for your property against unexpected events. While policies can cover fences, this protection is not automatic or all-encompassing. The extent of coverage depends on your policy’s specific terms and the circumstances of the damage.

How Fences Are Covered Under Home Insurance

Fences typically fall under the “other structures” portion of a standard homeowners insurance policy, often referred to as Coverage B. This part of your policy is designed to protect structures on your property that are not physically attached to your main dwelling, such as detached garages, sheds, or gazebos. Most common homeowners insurance policies include this coverage.

The coverage limit for other structures is usually a percentage of your dwelling coverage, known as Coverage A. This percentage commonly ranges from 10% to 20% of your home’s insured value. For instance, if your dwelling is insured for $300,000, your fence and other detached structures might be covered up to $30,000. It is important to assess the value of all your detached structures to ensure this standard limit provides adequate protection.

Covered Causes of Damage

Homeowners insurance policies typically cover fence damage when it results from specific events, known as perils. Common covered perils include fire, lightning, windstorms, and hail. For example, if a strong windstorm causes a tree to fall and damage your fence, or if hail severely impacts its structure, your policy would likely provide coverage.

Vandalism and theft are also generally included among the covered perils for fence damage. If your fence is intentionally defaced or materials are stolen, your insurance can help with the repair or replacement costs. Additionally, damage caused by vehicles not owned by the insured is often covered. Most policies cover the physical structure of your home and other structures on an “open perils” basis, meaning they cover any cause of damage unless specifically excluded.

Common Exclusions from Coverage

While homeowners insurance provides broad coverage, certain types of damage to fences are commonly excluded. Damage resulting from normal wear and tear, gradual deterioration, rot, or mold is typically not covered. This also applies to damage caused by pests or infestations, such as termites.

Neglect or a lack of proper maintenance on the homeowner’s part can also lead to claims being denied. For instance, if a fence collapses due to long-standing disrepair, insurance may not cover the loss. Furthermore, standard homeowners policies generally exclude damage from earth movement, such as earthquakes or landslides, and floods. Separate policies or endorsements are usually required to cover these specific risks.

Factors Affecting Your Payout

Several financial elements influence the amount you might receive for a covered fence claim. The deductible is the initial amount you are responsible for paying out-of-pocket before your insurance coverage begins. Common deductibles for homeowners insurance range from $500 to $2,000. This amount is subtracted from the total approved claim payout.

The coverage limit for “other structures” sets the maximum amount your insurer will pay for fence damage, regardless of the actual repair or replacement cost. Additionally, policies typically reimburse claims based on either Actual Cash Value (ACV) or Replacement Cost Value (RCV). An ACV policy pays the depreciated value of the fence, accounting for its age and wear, meaning the payout may not cover the cost of a new fence. In contrast, an RCV policy pays the cost to repair or replace the fence with new materials at current prices, without deducting for depreciation, often providing a more comprehensive payout.

The Claims Process

When your fence sustains damage that you believe is covered by your homeowners insurance, documenting the damage immediately is an important first step. Take clear photos and videos from various angles to capture the extent of the damage. This visual evidence provides crucial support for your claim.

If the damage could worsen or pose a safety risk, take reasonable steps to secure the property and prevent further loss. Contact your insurance company promptly to report the incident. Be prepared to provide the date of loss, the cause of the damage, and any initial information you have gathered.

Cooperate fully with the insurance adjuster who will assess the damage. They may require additional documentation or access to the property. Obtain detailed estimates for the repair or replacement of your fence from qualified contractors. Providing these estimates helps your insurer process the claim accurately and determine the appropriate payout.