Most homeowners know their policy covers the house itself, but fewer realize it also covers detached structures on the property. This protection is called Coverage B, or other structures coverage, and it applies to buildings and structures that are separate from the main dwelling. Understanding how it works helps you avoid a costly gap if a fence, garage, or guesthouse is damaged.
Coverage B applies to structures on your property that are not attached to the main house. Common examples include detached garages, fences, driveways, sidewalks, swimming pool enclosures, sheds, gazebos, and guesthouses. The structure must be separated from the dwelling—if it shares a wall or is connected by a roof, it is typically considered part of the main dwelling under Coverage A.
Most standard homeowners policies automatically set Coverage B at 10 percent of the dwelling limit (Coverage A). If your home is insured for $400,000, you have $40,000 in other structures coverage. That limit applies in the aggregate—across all detached structures combined, not per structure. The same perils that cover your home—fire, wind, hail, lightning, vandalism—generally apply to Coverage B as well. Flood and earthquake are excluded just as they are for the main dwelling.
Ten percent sounds reasonable until you start adding up what you actually have on your property. Consider these situations where the default limit can fall short:
If the total replacement value of your detached structures exceeds your Coverage B limit, you are underinsured. You can request a higher Coverage B limit from your insurer—it is usually an inexpensive endorsement relative to the added protection.
Other structures coverage does not protect personal property stored inside a detached garage or shed—that falls under Coverage C (personal property). It also excludes structures used for business purposes or rented to someone other than a tenant of the main dwelling. If you run a home business out of a detached office, standard Coverage B likely will not apply, and you may need a separate endorsement or commercial policy.
Many homeowners discover their Coverage B limit is inadequate only after a loss, which is the worst time to find out. A Truscott policy checkup reviews your current Coverage B limit against the actual replacement value of your detached structures and identifies any gaps before they become expensive problems. Reach out to make sure everything on your property is properly protected.
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