I find so interesting Other Structures coverage on the owner's policy is often overlooked by those in need, but becomes a point of contention for those who feel they do not. I field a lot of calls of policyholders who wish to withdraw coverage because they do not have a shed or detached garage on their property, but very rarely that I get a call from a homeowner asking for greater coverage because of the cost structures on their property.
It is safe to say that almost everyone needs a blanket Other Structures. Other structures covers (subject to policy exclusions) building or structure that is not attached to your home. Not only are detached garages and sheds in this category, but barns (not part of a company), fencing, and walkways are all included in this part of the coverage as well. In addition, homeowners policy provides coverage, which is 10 percent of the coverage of your home at no cost. Some carriers even increase this limit without cost, so be sure to check with your agent or insurance carrier to see what they offer.
This automatic percentage is both a good and a bad thing. The good news is that the policy recognizes that almost everyone needs at least some coverage for other structures and therefore provides you automatically at no charge. The bad part is, because it is automatically provided, many people do not think about whether or not the cover being provided is sufficient.
For example, if your home is insured for $ 250,000 and your policy provides 10 percent coverage for other structures which gives you $ 25,000 automatically. If you have a covered barn or a large shed and a detached 2 car garage with a living area above, this may not be enough coverage for you. Barns are generally expensive to build, and a garage with living space above (as an area or office entertainment, etc.) can get expensive as well, depending on the size and materials used. It is always a good idea to take stock of what you have for individual structures and assess whether or not the coverage being provided on your policy is sufficient to cover everything. If your house was to be burned down, there is a good chance that these dependencies can catch fire as well (according to their proximity to the house itself). You want to be sure that in the worst case, there is sufficient coverage for everyone.
Additional coverage for other structures can be added for a fee. It is worth noting that while the detached buildings can be covered at replacement cost (that will pay for the repair or replacement of the building without a deduction for depreciation), other structures that are not buildings are covered value (buffer constitutes the carrier will pay depending on the age and condition of the structure before the loss). These items include fences, driveways, and other man-made structures that are not buildings.
So the next time you puttering around your garden, take stock of what you have on the ground and contact your insurance agent to discuss these structures and whether or not you should Other structures increase your coverage to be properly protected.
Have you ever had a claim on another structure in your home? Did you have enough coverage? I would like to hear about it!
The warranties described above are in the most general terms and are subject to conditions and actual policy exclusions. For the actual wording cover, conditions and exclusions, see the policy or contact your insurance agent.
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