Other structures coverage is a section of a homeowners insurance policy designed to protect buildings and structures on a property that are not physically attached to the main home. This coverage is commonly referred to as Coverage B and plays an important role in protecting the full value of a homeowner’s property beyond the primary dwelling.
Many homeowners focus primarily on dwelling coverage and assume detached buildings receive the same level of protection automatically. In reality, other structures coverage operates under its own limits, rules, and exclusions. Understanding how it works helps homeowners avoid uncovered losses when detached structures are damaged.
Other structures coverage typically applies to buildings that stand alone from the main house. Common examples include detached garages, storage sheds, fences, gazebos, detached workshops, and standalone guest houses. Because these structures are separate from the dwelling, they are insured under Coverage B rather than Coverage A.
Coverage B protects these structures against the same types of covered perils that apply to the dwelling, such as fire, wind, hail, vandalism, and certain types of water damage. However, coverage applies only if the cause of loss is included in the policy. Excluded events, such as flooding or earthquakes, are not covered unless separate insurance is in place.
The coverage limit for other structures is usually expressed as a percentage of the dwelling coverage limit. A common default is 10% of Coverage A, though this can vary by insurer and policy. For example, if a home has $400,000 in dwelling coverage, other structures coverage may be limited to $40,000 unless increased.
Other structures coverage is not based on market value or property taxes. It is intended to reflect the cost to repair or rebuild detached structures using similar materials and construction methods. If the limit is too low, homeowners may need to pay out of pocket to complete repairs.
Claims under other structures coverage are subject to deductibles, just like dwelling claims. The deductible amount is subtracted from the approved claim total, which can significantly reduce payouts for smaller losses.
Understanding what other structures coverage is helps homeowners recognize that detached buildings are insured differently than the main home. It highlights the importance of reviewing coverage limits and ensuring they reflect the true value of all structures on the property.
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