What Does Other Structures Insurance Cover?

Other structures insurance provides financial protection for detached buildings on a property. This coverage, often labeled as Coverage B, is a standard component of most homeowners insurance policies. It helps manage the financial burden of repairing or rebuilding these separate structures if they sustain damage from covered events.

What Other Structures Are Covered

Other structures coverage typically applies to any building or fixture on your property not physically connected to your main dwelling. Common examples include detached garages, storage sheds, and gazebos. Fences are also generally included under this coverage.

In-ground swimming pools, guest houses, and carports are frequently covered as other structures. Even smaller fixtures like mailboxes or private driveways and sidewalks can fall under this category. However, the land itself or landscaping elements such as trees and plants are not typically covered by this specific section of a policy.

Types of Damage Covered

The types of damage covered for other structures usually align with the perils covered for the main dwelling. For “open perils” policies, any cause of damage is covered unless specifically excluded in the policy language.

Common perils that other structures insurance protects against include fire, lightning, windstorms, and hail. Coverage also extends to damage resulting from vandalism, theft, explosions, and smoke. Additionally, damage from falling objects, the weight of ice or snow, accidental discharge of water, and certain types of sudden electrical damage are typically included. This coverage is for the structure itself, not for personal belongings stored inside.

How Coverage Limits Work

Coverage for other structures is typically set as a percentage of the main dwelling’s coverage amount. This percentage commonly ranges from 10% to 20% of the dwelling’s insured value. For instance, a home with $300,000 in dwelling coverage might have $30,000 for other structures. This amount is automatically included in most standard policies.

When a claim is made, a deductible applies, meaning the policyholder is responsible for a set amount before coverage begins. Compensation for damages can be based on either actual cash value (ACV) or replacement cost value (RCV). ACV pays the depreciated value of the damaged structure, while RCV covers the cost to rebuild or repair without deducting for wear and tear. Policyholders can often adjust their coverage limits higher if their detached structures are of greater value, though this may increase the premium.

Common Coverage Exclusions

While other structures insurance provides extensive protection, certain types of damage or situations are typically excluded. Standard policies generally do not cover damage caused by floods or earthquakes, requiring separate policies or endorsements for these perils. Damage resulting from war, nuclear hazard, or government action is also excluded.

Damage due to neglect or a lack of proper maintenance is usually not covered. This includes issues like general wear and tear, rot, or infestations from pests and rodents. Structures used for business purposes are also typically excluded from standard coverage and may require a separate commercial insurance policy or specific endorsement.