Are Outbuildings Covered By Home Insurance? A Complete Guide

If you have a home insurance policy, you may wonder if it also covers your outbuildings, such as sheds, garages, greenhouses, or workshops.

The answer is yes, but it depends on the type and extent of coverage you have.

Image of an outbuilding
An Outbuilding Shed [PHOTO COURTESY OF REALHOMES]
What are outbuildings?

Outbuildings are structures that are detached from your main dwelling and used for domestic purposes.

They can be made of different materials, such as wood, metal, or brick.

They can also vary in size and value, depending on their use and contents.

Image of home insuring
Insurance Home Policy [PHOTO COURTESY OF JUBILEE]
Some examples of outbuildings are:

1.Sheds

These are small buildings that are used for storing tools, equipment, or gardening supplies.

2.Garages

These are buildings that are used for parking or storing vehicles, such as cars, motorcycles, or bicycles.

3.Greenhouses

These are buildings that are used for growing plants or vegetables.

4.Workshops

These are buildings that are used for hobbies or crafts, such as woodworking, pottery, or painting.

Why do you need to insure your outbuildings?

Your outbuildings may be exposed to various risks, such as fire, theft, vandalism, storm, flood, or earthquake.

Image of outbound shed building
Outbuilding Shed [PHOTO COURTRESY OF THE ZEBRA]
If something happens to your outbuildings or their contents, you may suffer a financial loss or inconvenience.

Therefore, you need to insure your outbuildings to protect yourself from these unexpected events.

How do you insure your outbuildings?

There are two ways to insure your outbuildings:

Include them in your home insurance policy

This is the most common and convenient way to insure your outbuildings.

Most home insurance policies cover your outbuildings as part of the buildings or contents section.

However, you need to check the terms and conditions of your policy to see what is included and excluded, and what limits and excesses apply.

For example, some policies may only cover outbuildings that are of first or second class construction (walls made of stone, concrete, or bricks with roofing made of tiles, concrete, or iron sheets).

Some policies may also have a lower sum insured or a higher excess for outbuildings than for the main dwelling.

 Buy a separate policy for your outbuildings

This is an alternative way to insure your outbuildings if they are not covered by your home insurance policy or if you want more coverage for them.

You can buy a standalone policy for your outbuildings from a different insurer or from the same insurer as your home insurance policy.

However, you need to compare the cost and benefits of having two policies versus having one policy that covers both your home and your outbuildings.

What factors affect the cost of insuring your outbuildings?

The cost of insuring your outbuildings depends on several factors, such as:

1.The value and size of your outbuildings and their contents.

2.The type and quality of construction of your outbuildings.

3.The location and security of your outbuildings.

4. The level and type of coverage you choose for your outbuildings.

5. The insurer and policy you choose for your outbuildings.

How do I know if my outbuildings are of first or second class construction?

To know if your outbuildings are of first or second class construction, you need to check the materials and quality of their walls and roofs.

According to the web search results, first class construction means that the walls are made of stone, concrete, or bricks, and the roofing is made of tiles, concrete, or iron sheets.

Second class construction means that the walls are made of timber, metal, or asbestos, and the roofing is made of thatch, grass, or wood.

Summary

Outbuildings are detached structures that are used for domestic purposes.

They can be covered by your home insurance policy or by a separate policy.

You need to check the terms and conditions of your policy to see what is covered and what is not.

You also need to consider the cost and benefits of having one or two policies for your home and your outbuildings.

READ MORE: Does Home Insurance cover Structural Problems? Protect Your Home From Structural Problems

Leave a Comment