How Many Buildings Does Other Structures Coverage Include?

Homeowners insurance policies provide financial protection for your property. “Other Structures Coverage,” or Coverage B, extends this protection to structures located on your property that are not physically attached to your main house. This coverage helps repair or replace these separate structures if they are damaged by covered events, complementing the coverage for your primary residence.

Understanding Other Structures Coverage

Other Structures Coverage typically applies to buildings or features on your property that stand apart from your main home, separated by a clear space. This means structures connected only by a fence or utility line would generally fall under this coverage, while an attached garage or deck would be covered under your main dwelling insurance. Common examples include detached garages, storage sheds, gazebos, fences, and guest houses. In-ground swimming pools are also often covered. These structures must be owned by the policyholder and located on the insured premises to qualify for coverage.

The types of perils covered for other structures usually mirror those covered for your main dwelling, which can include damage from fire, wind, hail, and vandalism. For example, if a tree falls on your detached garage due to a windstorm, your Other Structures Coverage would likely help pay for the repairs. This coverage protects the structure itself, not the personal property stored inside it; those items would fall under your personal property coverage. Standard policies typically cover detached structures on an “open perils” basis, meaning any peril not specifically excluded is covered.

Calculating Your Coverage Limit

The coverage limit for Other Structures Coverage is almost always determined as a percentage of your dwelling coverage, also known as Coverage A. This percentage is commonly set at 10% of your dwelling coverage, though it can range from 10% to 20% depending on the specific policy and insurer. For instance, if your dwelling is insured for $300,000, your Other Structures Coverage limit would typically be $30,000. This amount is usually included as a standard part of your homeowners policy, regardless of whether you currently have detached structures.

Policyholders can find their specific Other Structures Coverage limit detailed on their insurance declarations page. If the standard percentage does not adequately cover the value of your detached structures, it is often possible to purchase additional coverage. This is typically done through an endorsement, which is an add-on that increases the limit beyond the default percentage. Increasing this limit will usually result in a higher premium, reflecting the expanded protection.

Common Exclusions

While Other Structures Coverage provides broad protection, certain situations and types of structures are typically excluded from standard policies. Structures used for business purposes, such as a detached office or workshop primarily used for a home-based business, are generally not covered. Similarly, structures that are rented out to others, like a detached garage leased to a neighbor for storage, usually fall outside the scope of this coverage. In such cases, separate commercial property insurance or a specific landlord policy may be necessary.

Damage to structures located off the insured premises is also excluded, as the coverage applies only to structures within your property boundaries. The land itself, along with trees, shrubs, and plants, is not covered under Other Structures Coverage; these items often have separate, more limited coverages or are entirely excluded. Furthermore, damage resulting from perils commonly excluded from the main dwelling policy, such as floods, earthquakes, general wear and tear, or neglect, will not be covered for other structures either. Structures under construction are often excluded unless specifically added via an endorsement.

Evaluating and Adjusting Coverage

To determine if your current Other Structures Coverage is sufficient, begin by creating a comprehensive inventory of all detached structures on your property. This should include sheds, detached garages, fences, gazebos, and any other separate buildings. Once inventoried, estimate the replacement cost for each of these structures. Replacement cost refers to the amount it would take to rebuild the structure from scratch using new materials of similar kind and quality, without subtracting for depreciation. Obtaining quotes from local contractors for rebuilding similar structures can provide a good estimate.

Compare your total estimated replacement costs for all detached structures with your current Other Structures Coverage limit, which can be found on your insurance declarations page. If your estimated replacement costs exceed your current coverage limit, you may be underinsured. To address this, contact your insurance agent or company to discuss options for increasing your coverage. This typically involves adding an endorsement to your policy, which will raise the limit for Coverage B. Regularly reviewing your coverage is important, especially after adding new structures or making significant improvements, to ensure your policy keeps pace with the value of your property.