What is other structures coverage?

Damage to structures on your property that aren't attached to your house is covered by other structures coverage. (Your dwelling insurance covers the house itself.) This could include the structures listed below:

• Fence.
• Detached garage.
• Shed.
• Gazebo.
• Guesthouse.
• Driveway.
• Dock.

Other structures insurance may also cover a swimming pool, but it's worth double-checking with your insurer. Some insurance companies include an in-ground pool under dwelling coverage rather than other structures, particularly if it is connected to your home by a walkway or enclosure. Personal property coverage may apply if you have a portable above-ground pool that you can transport to another home.

What difference does it make? Because replacing a damaged pool can be costly, make sure the appropriate section of your policy has a high enough limit to cover it.

Other structures coverage pays only for the damaged structures themselves — not for anything stored within them. Assume your shed catches fire and burns down, destroying all of your tools and gardening supplies. Other structures coverage would pay to rebuild the shed, but personal property insurance would cover the contents.

Is other structures coverage required?

Other structures coverage is not legally required. Most mortgage lenders, however, require borrowers to have homeowners insurance, which almost always includes coverage for other structures.

If your mortgage is paid off or you paid cash for your home, you may be able to avoid purchasing homeowners insurance. However, if you don't have the financial resources to rebuild your home after a disaster, it may not be worth the risk.

What does other structures insurance cover?

Other structures on your property are generally protected against the same disasters as your house, such as fire, hail, wind, and vandalism. Most home insurance policies cover your house and other structures against "open perils." That is, as long as a particular disaster isn't specifically excluded from your policy, it's covered.

In rare cases, your homeowners policy may provide coverage for other structures on a "named peril" basis instead. This means that your property is only protected against disasters specifically listed in your policy. In general, these are as follows:

• Fire or lightning.
• Windstorm or hail.
• Explosion.
• Riot or civil commotion.
• Damage caused by aircraft.
• Damage caused by vehicles.
• Smoke.
• Vandalism or malicious mischief.
• Theft.
• Volcanic eruption.
• A falling object.
• The weight of ice, snow or sleet.
• Accidental discharge of water or steam.
• Sudden and accidental tearing apart, cracking, burning or bulging.
• Freezing of certain household systems or appliances.
• Certain unexpected, unintentional damage caused by artificially generated electric currents.

Not sure what type of homeowners insurance you have? Check with your agent or call your insurance company.

What does other structures insurance not cover?

Most homeowner policies include a detailed list of exclusions. Here are a few examples of the most common.

Flooding

A standard homeowners policy will not cover damage caused by heavy rain or an overflowing river that seeps into your shed. Flood insurance is available through the federal government and private insurers for homeowners in high-risk areas. It is important to note that federal coverage for other structures may be limited.

Earthquakes and other earth movement

Most homeowner policies exclude coverage for "earth movement" events such as earthquakes, sinkholes, landslides, and mudslides. You may be able to purchase additional coverage for these disasters.

Structures used for business

If your shed is primarily used to store equipment for your landscaping business, or if you run a small shop out of your guesthouse, those structures are unlikely to be covered by your homeowners insurance. Instead, you may require commercial insurance.

Normal wear and tear

Insurance is intended to provide a financial safety net for unexpected, unplanned problems, not to cover routine home maintenance. So it's unlikely to help if your aging fence begins to rot or the shingles on your detached garage begin to deteriorate.

Infestations

Preventing damage from termites, mice, and other pests is also considered routine maintenance, so cleaning up infestations is generally not covered by your policy.

How much other structures coverage do I need?

Many insurance companies limit your coverage for other structures to 10% of your dwelling coverage limit. So, if your home is insured for $300,000, you'd have $30,000 in coverage for other structures.

The default amount is not always appropriate for you. If you have an in-ground pool and a large shed, for example, $30,000 may not be enough to replace them. If you need to adjust your other structures coverage limit, consult with your agent or an insurance company representative.

How much does other structures coverage cost?

Other structures coverage is typically included as part of a homeowners insurance policy, which costs about $1,784 per year on average in the United States, according to InsuredCircle rate analysis. Your own rate will differ depending on where you live and how much coverage you require. Find the most affordable homeowners insurance.