What Does Other Structures Coverage Cover?

Other structures coverage is a component within a typical homeowner’s insurance policy that extends protection beyond the main dwelling. Many properties feature additional structures that require their own financial safeguard. This article clarifies what these “other structures” entail and outlines their coverage scope under a standard policy.

Defining Other Structures

“Other structures” refers to buildings and fixtures located on the insured property that are not physically attached to the primary residence. These must be on the same premises as the main house. Examples include detached garages, sheds, fences, gazebos, carports, and guest houses. Driveways, detached patios or decks, and freestanding mailboxes are also considered other structures. In-ground swimming pools and retaining walls are often included, though some insurers might classify pools under dwelling coverage depending on their attachment to the home. The fundamental criterion is a clear space or fence separating the structure from the main dwelling.

Covered Perils

Other structures coverage protects against various events, often called “perils,” that can cause damage. The scope of protection frequently mirrors the coverage provided for the main dwelling. Policies may operate on either a “named perils” basis, covering only specific events listed, or an “open perils” basis, covering all events unless explicitly excluded. Most standard homeowners policies (such as HO-3 and HO-5 forms) cover other structures on an open perils basis. Common perils include fire, lightning, windstorm or hail, explosions, smoke, vandalism, and theft. Additional covered events involve damage from aircraft or vehicles not owned by the insured, falling objects, the weight of ice, snow, or sleet, and accidental discharge or overflow of water or steam from plumbing, heating, or air conditioning systems, including freezing.

Common Exclusions

Certain situations and types of damage are excluded from “other structures” protection. Standard exclusions align with those for the main dwelling. Damage from floods and earthquakes is universally excluded and requires separate, specialized policies. Other common exclusions include neglect, intentional damage by the insured, and damage from pests or animals like termites and rodents. Wear and tear, gradual deterioration, inherent vice (damage from a defect within the property itself), war, and nuclear hazard are not covered. Structures used primarily for business operations, such as a detached office or a guest house rented out, are excluded unless specifically endorsed or covered by a commercial policy.

Understanding Coverage Limits

The financial coverage for “other structures” is determined as a percentage of the dwelling coverage limit for the main house. This percentage ranges from 10% to 20% of the dwelling’s insured value. For example, if a home has $300,000 in dwelling coverage, the other structures coverage might be set at $30,000. This amount represents the maximum the insurer will pay for damages to all qualifying structures.

A deductible applies to other structures coverage, similar to dwelling and personal property coverage. This deductible is the amount the policyholder must pay out of pocket before insurance coverage begins for a claim. Choosing a higher deductible can result in lower insurance premiums, but it means a greater out-of-pocket expense if a claim occurs. This coverage pays for the damaged structures themselves, while items stored inside them are covered under personal property insurance.