Did YOU know: Other Structures Coverage
Unfortunately, many people who have purchased homeowners’ insurance do not fully understand the scope of the coverage they have purchased. Particularly perplexing for many people is how homeowners’ insurance policies address buildings on the property that are not physically attached to the home.
If a building or fixture on the property does not share a foundation, roof or wall with the dwelling, it is not covered under the dwelling portion of a typical home insurance policy. The “dwelling” is the actual home and any structure physically attached to it.
This is where Other Structures coverage comes into play. This type of coverage is incorporated into most Homeowners’ policies and helps cover the cost of damage to other structures on the property. “Other Structures” may include buildings such as tool sheds and detached garages, as well as fixtures such as fences, sidewalks and patios. While this coverage is included in most Homeowners’ policies and might seem straightforward, you might need to adjust your coverage based on the value and function of the additional structures on your property.
Below are a few conditions that Tegner-Miller Insurance Brokers suggests you consider when evaluating your Other Structures coverage.
- The typical amount of Other Structures coverage included in a homeowners’ policy is 10% of the dwelling limit. For example, if your home is insured for $400,000, the policy will typically include $40,000 of Other Structures coverage. This limit may or may not be sufficient to protect your property. If you have a detached garage or tool shed, the 10% limit might not adequately cover your losses and you may need to purchase additional coverage for these buildings.
- Do you have a guest house or rental property on your property? If you do, you should speak to your Tegner-Miller broker for additional assistance so you can determine if you are properly protected.
- Do TMIB and the insurance company know about your other structures? If you have recently added a patio, tool shed, garage or other structure on your property, you will need to let us know right away
As always, be sure to speak with your broker at TMIB to get more information on this type of coverage and understand how it applies to your needs. Please call us at 310-828-9662 if you have any questions.