When most people think of home insurance, they typically think of coverage for the main structure of their home. However, many homes also have additional structures on their property, such as sheds, detached garages, or barns. These structures are commonly referred to as outbuildings, and they can be just as vulnerable to damage or loss as the main house. That's why it's important to understand outbuilding coverage for home insurance. Here is some information to help make sure you have the right protection in place.
What is Outbuilding Coverage?
Outbuilding coverage is a type of insurance that provides protection for structures on your property that are not attached to your main house. This coverage is typically included in most standard homeowners insurance policies. Note that the specific terms and limits of the coverage can vary depending on the policy and the insurance provider.
How Much does Outbuilding Coverage Actually protect?
Outbuilding coverage is usually calculated at 10% of the estimated replacement cost of the property.
If the replacement cost of the home is $500,000 then outbuilding coverage would come in at $50,000 for those structures.
The 10% for outbuildings is typically included in your annual premium and does not cost extra. You can get supplemental coverage for outbuilding with only a small premium increase, you will not usually need a separate policy.
What is Covered by Outbuilding Coverage?
Outbuilding coverage typically provides protection for the following types of structures:
- Detached garages
- Sheds
- Barns or other farm structures
- Pool houses or other recreational structures
- Guest houses or other secondary residences
- Gazebos
- Playgrounds
- Decks
- Fences
In addition to the structures, outbuilding coverage may also provide protection for other types of property that are stored inside or near these structures. This may include tools, equipment, or other personal property. Note that having solar panels on outbuildings, like detached garages, will usually fall under the purview of outbuilding coverage.
What is Not Covered by Outbuilding Coverage?
Outbuilding coverage typically does not provide protection for structures that are used for business purposes or structures that are rented out to tenants. If you have structures on your property that are used for these purposes, you may need a commercial policy.
In addition, outbuilding coverage may have limits on the amount of coverage for certain types of structures or property. For example, there may be a limit on the amount of coverage provided for detached garages or for equipment stored in a shed.
How to Determine the Amount of Outbuilding Coverage You Need
When purchasing home insurance, it's important to make sure you have adequate outbuilding coverage. To determine the amount of coverage you need, you should consider the value of the structures and property you want to insure. You can estimate the value by taking inventory of what is stored in or near the structures. Then calculate the replacement cost of all items.
It's a good idea to talk to your broker to make sure you have the right coverage and to ask about any additional coverage options that may be available.
Final Thoughts
Outbuilding coverage is an important coverage for homeowners. By understanding the terms and limits of outbuilding coverage and making sure you have adequate protection in place, you can have peace of mind knowing that your property and structures are covered in case of damage or loss.
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