What Is Coverage B on a Homeowners Policy?

Homeowners insurance is a foundational safeguard for individuals owning property, offering financial protection against various risks that could damage their home and belongings. These policies are typically structured with distinct coverage types, often labeled alphabetically, each designed to address specific aspects of potential loss. Understanding the purpose of each coverage segment is important for property owners to ensure their assets are adequately protected.

Defining Coverage B

Coverage B, commonly known as “Other Structures” coverage, is a component of a standard homeowners insurance policy that provides financial protection for structures located on the policyholder’s property but not physically connected to the main dwelling. These are separate buildings or constructions that serve various purposes. Coverage B covers costs to repair or rebuild these detached structures if damaged by a covered peril, such as fire, windstorms, or vandalism.

This coverage extends to structures that are set apart from the main house by a clear space. It also includes structures connected only by a fence, utility line, or similar tenuous connection, ensuring that even partially linked elements receive coverage if they are not integral to the primary residence. The intent is to differentiate these auxiliary structures from the main dwelling, which falls under Coverage A (Dwelling coverage), and provide dedicated protection for them.

Structures Covered by Coverage B

Coverage B encompasses a variety of structures found on a property that are not physically attached to the main residence. Common examples include:

Detached garages
Sheds
Gazebos
Fences
Swimming pools, along with their associated structures such as pump houses
Smaller fixtures like mailboxes or flagpoles, if permanently installed and separate from the dwelling

Common Exclusions from Coverage B

While Coverage B provides broad protection for detached structures, certain items or situations are typically excluded from coverage. These commonly include:

The land itself, upon which any structure sits.
Structures used primarily for business operations, unless a specific endorsement is added to the policy to cover such activities.
Structures rented out to individuals who are not tenants of the main dwelling.
Damage resulting from wear and tear, neglect, or issues like pest infestations, as these are generally considered maintenance responsibilities rather than sudden, accidental perils.

Determining Coverage B Limits

The coverage limit for Coverage B is typically established as a percentage of Coverage A, which is the dwelling coverage for the main house. This percentage commonly ranges from 10% to 20% of the Coverage A limit, though it can vary by insurer and policy. Policyholders often have the option to increase this standard percentage if they possess numerous or particularly valuable detached structures on their property. This adjustment helps ensure that the total value of all other structures is adequately protected, preventing underinsurance in the event of a covered loss. Periodically reviewing these limits is important to confirm they align with the current replacement costs of all detached structures on the property.