What is other structures coverage?

Damage to structures on your property that aren't related to your house is covered under other structures coverage. (Your housing insurance covers the house itself.) Structures of the following sorts could be included:

• 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 carriers put an in-ground pool under dwelling coverage rather than other structures, particularly if it is connected to your home by a walkway or enclosure. If you have a portable above-ground pool that you can transport to another residence, it may be covered under personal property coverage.

What is the significance of this? Because rebuilding a damaged pool can be costly, be sure the appropriate component of your policy has a high enough amount to cover it.

Other structures coverage pays only for the damaged structures, not anything stored within them. Assume your shed catches fire and everything within it is destroyed, including a large collection of tools and gardening materials. The shed's other structures coverage would pay to reconstruct it, but the contents would be covered by your personal property insurance.

Is other structures coverage required?

Other structures coverage is not required by law. Most mortgage lenders, however, require borrowers to carry homeowners insurance, which nearly always includes coverage for other structures.

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

What does other structures insurance cover?

The additional structures on your property are often protected against the same hazards as your home, such as fire, hail, wind, and vandalism. The majority of homeowners policies cover your home and other structures against "open dangers." That is, as long as a particular calamity isn't specifically excluded from your policy, it's covered.

In some circumstances, your homeowners insurance policy may cover other structures on a "designated danger" basis instead. This means that your property is only protected against disasters expressly listed in your insurance. 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 sudden, accidental damage from artificially generated electric currents.

Are you unsure about the sort 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 description of what they do and do not cover. Here are a few examples of the most prevalent.

Flooding

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

Earthquakes and other earth movement

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

Structures used for business

If your shed is largely 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 difficulties, not to pay routine house maintenance. As a result, it's unlikely to help if your aged 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 often not covered by your policy.

How much other structures coverage do I need?

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

The preset quantity is not always appropriate for you. For example, if you have an in-ground pool and a huge shed, $30,000 may not be enough to repair them if they are damaged. If you need to increase the coverage limit for other structures, 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 around $1,765 per year on average in the United States, according to InsuredCircle pricing research. Your personal rate will differ depending on where you reside and how much coverage you require. Find the most affordable homeowners insurance.