What is Other Structures Coverage for Home Insurance?
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In most cases, 10% of the main dwelling coverage of your homeowners insurance extends to other structures on your property, such as detached garages and fences. Your policy defines these structures as Coverage B and your main residence as Coverage A.
Coverages A and B work similarly. For example, your shed is still guarded against damage from windstorms and the same exclusions apply. But Coverage B has additional exclusions.
Which structures are protected by the Coverage B section of homeowners insurance?
Coverage B protects most structures on your property, whether completely separate from your residence or connected to it by piping or electrical wiring.
Examples of protected structures sometimes covered by homeowners insurance
- Sheds
- Awnings
- Detached garages
- Fences
- Pool houses
- Docks
- Barns
- Greenhouses
- Piers
- Gazebos
- Boathouses
- Mailboxes
- Guesthouses
Your policy protects these structures from the same perils as your main residence. Coverage B pays for damage to the other structures on your property from wind, fire, lightning, accidental discharge of water and other people's automobiles.
You're also protected from falling objects, such as trees, as long as you've maintained your property. Say you know a tree on your property is rotted but don't have it removed. If that tree falls through the roof of your detached garage, you won't receive compensation from insurance.
When doesn't Coverage B apply to your property?
A few restrictions specific to Coverage B could affect which structures are covered. Coverage B doesn't cover the land that your property stands on or structures that you rent to others. This means your insurance won't always protect your guesthouse.
For example, if you participate in a home-sharing program like Airbnb, a guesthouse that you rent out won't be protected by Coverage B.
Your insurance won't cover other structures that you use for business purposes, either. For example, your insurance will only cover a barn if you don't use it for commercial farming. If you do, you'd have to buy special insurance.
Since it's an extension of your policy's dwelling protection, Coverage B's exclusions are similar. Your homeowners policy excludes damage to your other structures from earthquakes, floods, freezing, mold or fungus, and wear and tear. Your structures aren't covered if there's faulty, inadequate or bad workmanship or poor maintenance.
Your homeowners policy won't cover damage caused by birds, vermin, insects or pets. If termites or bats infest your detached garage or barn, your claim will be denied.
Can you increase your Coverage B protection?
You can increase the protection of your other structures by increasing the limits of your policy's main dwelling coverage. Since Coverage B is only 10% of your policy's dwelling limit, you should consider how much it would cost to replace your property's other structures when buying homeowners insurance.
For instance, a $250,000 policy only covers $25,000 for your detached garage. Increasing your total coverage to $500,000 would provide more security if something were to happen to the entire structure.
If you want to protect certain items in your other structures, you can add floaters or endorsements. This could be a good idea if you store valuables like jewelry, firearms, currency or bullion in your other structures. Typically, homeowners policies restrict the amount they pay for these items.
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