Having other structures coverage in homeowners insurance is a crucial part of ensuring you’re adequately insured. This policy component can pay to repair or replace other structures or buildings on your property besides your dwelling place if damaged by a covered peril, such as a storm. For example, other structures insurance may help fix your detached garage if a tree falls on it.
Here are key points to remember when looking to maximize insurance protection for other structures.
Other Structures Covered By Homeowners Insurance
Such objects or structures are not physically connected to your primary dwelling. Typical examples include:
- Detached garages
- In-ground pools
To account for all other structures, think about any detached physical construction or buildings on your property that are exposed to the same hazards as the main house. If your homeowners policy includes risks like fire, vandalism, storm, theft, and falling objects, it will probably cover detached structures for those hazards too.
Your policy lists all the covered disasters, so be sure to read it and take the necessary steps to maximize your homeowners insurance protection.
Estimating Your Other Structures Insurance Coverage Amount
According to the Insurance Information Institute (III), standard homeowners policies typically cover detached properties for up to 10 percent of the dwelling coverage amount. For example, if you’ve insured your house for $300,000, your other structure’s coverage may amount to a maximum of $30,000.
Keep in mind that every physical home upgrade introduces a coverage issue. So, if you recently built an in-ground swimming pool, for instance, you’ll want to review your other structures’ coverage limits.
You may need to adjust the limits to have your insurance policy pay to repair or replace your detached structures in case of a covered loss. Also, newly built structures like an in-ground pool introduce a liability that you’ll want to cover to protect yourself.
Why Review Your Other Structures’ Coverage Limit?
Your local agent can help with the necessary other structures’ insurance evaluations and adjustments to close any coverage gaps. Take the example of a $30,000 limit on your existing other structures coverage. If the repair or replacement cost of a structure after a covered loss exceeded this limit, you’d have to pay the difference out of pocket.
So, if a fire burned down your shed, which cost $35,000 to replace, you’d have to pay the extra $5,000 and your deductible. You can avoid this situation by having an endorsement that increases your other structures insurance limit.
Coverage for Items Stored in Detached Structures
If you keep your personal belongings in other structures, such as your detached garage, you’ll want to insure those too. Other structures coverage may pay to rebuild your garage after fire damage, but personal property insurance will protect the contents.
The personal property component of your policy covers all listed belongings, no matter where you keep them. However, this cover doesn’t include business or office equipment stored in unattached buildings. You’ll typically need a commercial policy to protect such items.
Remember to have your agent adjust your coverage limits accordingly whenever your personal property inventory changes. For example, you may need your premium rates reviewed once you start storing newly acquired expensive sporting equipment in your detached garage.
Do you have adequate homeowners insurance other structures coverage? If you’re not sure, it may be time you reviewed the limit on your existing coverage. Don’t hesitate to contact the team at Kneller Agency today for professional assistance. Our agents can help you identify and seal any coverage gaps in your home insurance policy.
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