You know that you need to buy homeowners insurance to protect your house. But what about other buildings on your property like storage sheds, carports, gazebos or fences? Can your home insurance cover them? The good news is that it can, but this coverage falls under a special benefit called other structures or detached structures insurance.
Detached structures insurance is a great benefit for any homeowner who has freestanding buildings or other construction separate from their primary dwelling. However, this coverage does have its limits, though you can adapt it to meet your individual needs, too.
Let’s take a closer look at the benefits provided by most detached structures insurance coverage.
What does detached structures insurance cover?
In home insurance terms, a detached structure is one that is not a part of your main dwelling. These might be:
- Certain landscaping or retaining walls
When you look at your homeowners insurance, your house itself will usually be insured under the policy’s dwelling coverage, also known as Coverage A. These other buildings are insured separately, usually under what most policies call Coverage B.
Generally, your detached structures insurance covers the qualifying buildings against the same hazards that might damage your dwelling. These might be fires, vandalism, severe weather damage or other unexpected events.
How much does detached structures insurance pay me?
When insuring your home, you will insure the dwelling for its replacement cost. This is the amount necessary to rebuild your home to the value it was at the time of the accident. Detached structures insurance works a bit differently, however.
Usually, the limit of a detached structures policy is a percentage of your total dwelling insurance limit. So, if you insure your dwelling for $500,000, and your detached structures limit is 20% of that, then you will be able to receive at most $100,000 to repair all the damaged items. Your detached structures coverage will contain a separate deductible and will also pay based on the structure’s replacement cost value. Keep in mind, if a claim falls below the amount of your Coverage B deductible, then your plan will not pay at all. Always choose a deductible that you can afford.
If you are concerned that the value of a detached structure is not adequately represented in your percentage limit, then you might be able to expand your coverage. Many home insurance policies offer an endorsement called increased other structures protection, which can help you raise the value of the limit on this coverage.
Our job is to help you design the other structures insurance that is best for you and your property. We are experts in all matters related to home insurance, and we will make sure that your plan always protects you in the most effective and secure ways.