What Does Other Structures Coverage Cover?
Gain clarity on Other Structures Coverage. This guide explores its purpose, scope, and financial aspects within your homeowner's policy.
Other structures coverage is a component of a standard homeowner’s insurance policy that provides financial protection for structures located on your property that are not physically attached to your main dwelling. This coverage helps to repair or replace these detached structures if they are damaged by a covered event. It extends the protection of your homeowner’s insurance beyond the primary residence, safeguarding other valuable assets on your land.
Types of Structures Included
This coverage is specifically designed for structures that stand apart from your home. Examples include detached garages, sheds, fences, gazebos, pergolas, and carports. Other structures like mailboxes, satellite dishes, and retaining walls may also be included. In-ground swimming pools are often covered, though some policies might classify them under dwelling coverage if connected by a walkway or enclosure. These structures are separated from the main dwelling by a clear space or are connected only by a fence.
Common Perils Covered
Other structures coverage typically protects against the same types of events that threaten your main home. These perils include fire and lightning. Windstorms and hail can also damage detached structures. Theft and vandalism are generally covered, providing financial assistance if your separate structures are damaged or items are stolen.
Damage from falling objects, such as trees, or the weight of ice, snow, or sleet is often included. Accidental discharge or overflow of water or steam from a plumbing system is another peril that policies may cover.
Common Exclusions
While other structures coverage protects against many perils, it does not cover all types of damage or situations. Structures used for business purposes are generally excluded from coverage, unless a specific endorsement is added to the policy. Similarly, structures that are rented out to others may not be covered under a standard policy. Common natural disaster exclusions include damage from floods, earthquakes, and other forms of earth movement. Policies typically do not cover damage resulting from neglect, intentional acts by the policyholder, or routine wear and tear. Damage caused by animals or pests, such as termites or rodents, is also frequently excluded.
Coverage Limits and Deductibles
The coverage limit for other structures is typically calculated as a percentage of your main dwelling coverage. Many insurers set this limit at 10% of the dwelling coverage amount, though this can vary. For example, if your dwelling is insured for $300,000, your other structures coverage would typically be $30,000. You may be able to increase this percentage if the value of your detached structures warrants more coverage.
A deductible typically applies to other structures coverage, similar to the deductible for your main dwelling. This is the amount you pay out-of-pocket before your insurance coverage begins. Some policies may default to Actual Cash Value (ACV) for other structures, which accounts for depreciation. However, Replacement Cost (RC) coverage, which pays to replace damaged property with new items of similar kind and quality without deducting for depreciation, may be available through an endorsement.