Do I Need Other Structures Coverage? What You Need To Know

Other structures coverage is a type of homeowners insurance that protects structures on your property that are not attached to your main house, such as a fence, shed, or detached garage.

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It can help you pay for repairs or replacements if these structures are damaged by a covered peril, such as fire, hail, wind, or vandalism.

In this article, we will explain what other structures coverage is, what it covers, what it does not cover, and how much it costs.

We will also provide some tips on how to choose the right amount of coverage for your needs.

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What is other structures coverage?

Other structures coverage, also known as Coverage B, is the part of your home insurance policy that helps to cover the costs to repair or replace structures on your property other than your home if they are damaged by a covered risk.

These structures could include:

  • Fence
  • Detached garage
  • Shed
  • Gazebo
  • Guesthouse
  • Driveway
  • Dock
  • Swimming pool (depending on the insurer)

Other structures coverage pays only for the damaged structures themselves, not for anything stored inside them.

For example, if your shed catches fire and everything inside it is destroyed, other structures coverage would pay to rebuild the shed, but your personal property insurance would cover the items inside.

What does other structures coverage cover?

Other structures coverage covers the same perils as your dwelling coverage, which are the causes of damage that your policy protects you from.

These perils vary depending on the type of policy you have, but they typically include:

1.Fire and smoke

2.Lightning

3.Wind and hail

4.Explosion

5.Vandalism and malicious mischief

6.Theft

7.Falling objects

8.Weight of snow, ice, or sleet

9.Water damage from plumbing, heating, or air conditioning systems

10.Power surges

Some policies may also cover additional perils, such as volcanic eruption, riot, or aircraft.

However, there are some common perils that are usually excluded from other structures coverage, such as:

1.Flood

2.Earthquake

3.Landslide

4.Sinkhole

5.Mold

6.Wear and tear

7.Neglect

8.Intentional damage

9.Government action

10.Nuclear hazard

11.War

If you want to protect your other structures from these excluded perils, you may need to purchase separate policies or endorsements to supplement your coverage.

How much does other structures coverage cost?

The cost of other structures coverage depends on several factors, such as:

1.The value of your other structures

2.The amount of coverage you choose

3.The deductible you choose

4.The type of policy you have

5.The location of your property

6.The risk of damage to your property

The limit for other structures coverage is usually set at 10% of your dwelling coverage limit.

For example, if your dwelling coverage limit is $300,000, your other structures coverage limit would be $30,000.

This means that your insurer would pay up to $30,000 to repair or replace your other structures if they are damaged by a covered peril.

However, you may be able to adjust your other structures coverage limit if you think it is too high or too low for your needs.

Some insurers may allow you to increase or decrease your limit, or even remove it altogether, depending on your preferences.

However, this may affect your premium, which is the amount you pay for your policy.

Your deductible is another factor that affects your other structures coverage cost.

A deductible is the amount of money you have to pay out of your own pocket before your insurer pays for a claim.

For example, if your deductible is $1,000 and your other structures claim is $5,000, you would pay $1,000 and your insurer would pay $4,000.

Generally, the higher your deductible, the lower your premium, and vice versa.

How to choose the right amount of other structures coverage?

To determine this, you may need to do some research and calculations, such as:

1.Make a list of all the structures on your property that are not attached to your main house, and estimate their current value and replacement cost.

2.Compare the total value and replacement cost of your other structures with your current other structures coverage limit, and see if it is enough to cover them.

3.Consider the likelihood and severity of damage to your other structures, and how much you can afford to pay out of your own pocket in case of a claim.

4.Decide if you want to increase, decrease, or remove your other structures coverage limit, and how that would affect your premium and deductible.

5.Shop around and compare quotes from different insurers to find the best deal for your other structures coverage.

What is the difference between other structures coverage and dwelling coverage?

For example, other structures coverage would cover a fence, a shed, or a detached garage, while dwelling coverage would cover your roof, your walls, or your attached garage.

Both coverages pay for repairs or replacements if these structures are damaged by a covered peril, such as fire, hail, or vandalism.

However, they have different limits and deductibles, which affect how much you pay for your policy and how much you receive in a claim.

 

Conclusion

Other structures coverage is an important part of your homeowners insurance policy that can help you protect your property and your finances.

It covers structures on your property that are not attached to your main house, such as a fence, shed, or detached garage, if they are damaged by a covered peril.

It does not cover the contents inside these structures, nor does it cover damage caused by excluded perils, such as flood or earthquake.

The cost of other structures coverage depends on the value of your other structures, the amount of coverage you choose, the deductible you choose, the type of policy you have, the location of your property, and the risk of damage to your property.

The limit for other structures coverage is usually 10% of your dwelling coverage limit, but you may be able to adjust it according to your needs.

You should compare quotes from different insurers and choose the right amount of other structures coverage for your situation.

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