After my grandfather retired at eighty years old, he picked up the hobby of restoring antique John Deere tractors. It didn’t take long for him to take over the existing detached garage, build onto it, and fill it with tools and equipment. Soon, its value likely exceeded that of the home itself. He’d created the original He Shed.
Many clients’ properties include detached garages, gazebos, sheds, fences, swimming pools, or boat docks. These can be expensive to replace and can be protected under a special portion of a homeowners policy titled “other structures”. This coverage repairs or replaces structures other than the main home.
What Structures Are Covered?
Most homeowners insurance policies anticipate other structures on the property and provide a base-level coverage equal to ten percent of the home insurance value. Thus, if your home is insured for $200,000, a detached garage would be covered for up to $20,000. However, that amount can be increased as needed. In the case of my grandfather, he’d probably add another zero…
Your insurance company may provide a blanket coverage that protects all buildings on site, or they may list the structures separately along with individual coverage levels. However it is accomplished, ensure the appropriate values are included.
A note regarding contents
Other structures coverage protects the structure itself, but the contents are covered along with those in the home, under one lump sum. This bears a little explanation:
- Main Dwelling: Coverage for the main home.
- Other Structures: Coverage for other structures on the property not attached to the main dwelling.
- Personal Property: Coverage for contents, no matter where they are located.
Thus, add together the value of all contents contained in the home, in other structures, and even in offsite storage, ensuring their worth is protected by your policy.
Docks, Piers, and Boat Houses
Other structures can include docks, a boat launch, and similar constructions. Insurance companies address these items in a variety of manners, so ensure you clearly communicate their replacement value to your insurance agent and that the policy includes their cost. If you own a dock that can be removed seasonally, it may be considered contents and be covered under the personal property portion of the policy.
For a dock or pier to be covered by a homeowners insurance policy, it must be located on the same property as the primary residence. If not at the same location, the separate site must be added to the policy. A dock or pier rented at a marina cannot be covered because it belongs to the marina.
Swimming Pools
In-ground swimming pools can be protected under other structures coverage as well. The pool will be covered for the same perils as the home, however freezing is typically excluded. Therefore, ensure you drain the pool at the end of each season. Above-ground pools are usually considered personal property and their value is added to that portion of the policy. Liability is a concern for swimming pools and claims are frequent, but beyond the scope of this article. Ask your agent to ensure you are properly covered for all situations.
Other structures coverage is a valuable part of your homeowners insurance policy. However, it has limitations and I guarantee my grandfather’s garage-turned-repair-shop was grossly under insured. Review your policies on the client service portal or mobile app, or contact your Bankers Insurance agent. We will help determine your risks and advise how to cover them. Not a client of ours? Let us compete for your business! Each of our clients is assigned a personal insurance agent and provided their email address as well as a phone number that rings right on their desk.
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We live with my mother-in-law. We purchased a shed to store the contents of our former house. How do we insure the shed and the contents?
Ellen,
Thank you for your question. The easiest way to meet your need is to obtain a renters policy and insure your contents on that policy. You are living in a home not your own, so a renters policy is the perfect fit. Renters polices are inexpensive and readily available. I suggest you insure the shed itself on the renters policy as “contents” also. That said, not all insurance companies will allow you to insure the shed as “contents”, but some will. If unable to insure the shed as “contents” a separate policy for the shed may be necessary, but the cost of this second option typically makes the first option much more appealing. Ask your insurance agent as they will be able to best advise in your specific situation, in your specific location, which insurance company(s) would be best for you. Let us know if we can be of service. Thank you again, and all the best!
I’m in the same situation. I am renting I the country, and I have purchased a shed to do my stained glass artwork. I am not in business as an artist, just do it as more of a hobby. However, I have very expensive glass supplies and tools, including hand tools and electric saws, grinders, polishers, etc. How can I find the right coverage for my she shed and it’s contents?
Angie
Angela, thank you for reaching out. Wow, that is an interesting situation from an insurance perspective. Here’s a few ways to approach it, in order of simplicity and cost:
I hope this helps. Let us know any other questions. Thanks!
I rent the home i live in but i bought a shed 14×24. Can i get insurance on my shed? Carol WilsonBland
Great question. I asked around to our experts in the office and there was a lot of head scratching. In general, renters policies do not extend to provide coverage to the physical structure of things such as sheds or outbuildings. The contents of the shed, of course, is a different story. Contents coverage is easily available in a standard renters policy. But assuming your question was regarding the STRUCTURE itself, that depends upon the insurance company. Most rental insurance companies do not offer coverage on sheds and other structures. One agent in our office said she ran into this exact situation and was able to find an insurance company to quote the shed, but admitted the price was so high the client opted to not accept the quote.
So in summary: you can insure the contents with little issue. Covering the shed itself is a possibility, but the cost may be a bit high.