Insurance for Other Structures

Homeowner’s Insurance for Other Structures

As with auto insurance, oftentimes you don’t know how much you need homeowner’s insurance until you have to file a claim. Avoid any unpleasant surprises by making sure you fully understand what your policy does and does not cover. One area that tends to cause confusion is insurance for “other structures” on your property.

Primary dwelling versus other structures

First, here’s a quick rundown on dwelling insurance. It covers the house and any structures that share the same foundation as the primary home. Any structures that are not attached are considered “other structures” and require additional insurance.

Other structures might include a detached garage, a storage shed, and any fixtures on the land such as fences and patios. Most homeowner’s insurance policies provide just 10 percent of the dwelling coverage for other structures. So, if your home is covered for $300,000, then other-structures coverage would be $30,000.

If you think that your other structures are worth more than 10 percent of your dwelling coverage, talk with your insurance provider. You will need to add on coverage to ensure your other structures can be replaced in the event of disaster.

Special circumstances

Other cases where you might need additional coverage beyond the standard 10 percent would be: 1) if you rent any other structure to someone else; 2) if you use a structure for business purposes, and 3) you add on structures that were not included in your original policy.

Contact your insurance agent as soon as possible to get complete coverage before you actually need it.