Insurance policies are full of technical terms and lots of words in your policy packet that can cause your eyes to start to glaze over when reading. We get it. But this means oftentimes important terms and coverages can get overlooked or buried within your policy. One of those is Coverage B – Other Structures. While Coverage A typically covers your primary dwelling, Coverage B is also part of your home insurance policy, but it protects additional structures on your property other than your home.
These generally include:
- Fences
- Sheds
- Detached Garages
- Barns
- Gazebos
- Guest Cottages
- Driveways
- Greenhouses
When is Coverage B Useful?
- Natural Disasters. When severe weather strikes, such as hurricanes, tornadoes, or heavy snowstorms, your other structures can be vulnerable. Coverage B can step in to repair or replace them if they sustain damage.
- Accidents. Mishaps can occur, whether it’s a wayward baseball damaging your shed or a vehicle accidentally crashing into your fence. Coverage B offers the financial buffer needed to restore these structures.
- Theft and Vandalism. Unwanted intruders can target your detached structures, even with the proper security measures. Coverage B ensures that you’re not left footing the bill for repairs or replacements.
- Fire and Smoke. In the unfortunate event of a fire, Coverage B extends its protective umbrella to the other structures on your property, allowing you to rebuild without incurring significant financial burdens.
Determining Coverage Limits:
The standard coverage limit for other structures is usually a percentage of your main dwelling’s coverage limit, often around 10%. However, you have the flexibility to adjust this limit based on your unique needs. If you have structures that hold substantial value, consider increasing the coverage limit to ensure adequate protection.
It’s important to note your specific policy terms may vary, so reviewing your policy documentation and discussing coverage details with your insurance provider is important.
Limitations and Exclusions
While this coverage extends protection, it’s important to recognize its limitations. Common exclusions include wear and tear, infestations, and damages from earth movements. For safeguarding against perils like floods, a separate flood insurance policy is essential.
Things like solar panels, attached decks or attached garages that are typically fixed to the walls or roof of the home are not covered under other structures coverage.
While Coverage B protects the structures themselves, it generally does not extend to the contents within those structures, such as gardening equipment, tools, or pool supplies. To safeguard these items, your personal property coverage (Coverage C) can be tailored accordingly.
While often overlooked, Coverage B holds immense significance, safeguarding the various other structures we all tend to have on our property. From functional structures to aesthetic enhancements, Coverage B is there to help shield against the unpredictability that life may bring. Understanding its scope and implications equips you to make informed decisions, ensuring that every facet of your property remains safeguarded. Be sure to speak with your Swyfft Agent to learn more.