Home insurance coverage protects you from various risks, which is why it includes various forms of coverage. One of these is 'other structures' coverage, which many people have heard of but don't know intimately. Below is a series of questions and answers to shed more light on other structures coverage.
What Is It?
Homeowners insurance is designed for your primary dwelling (your main house). Other structures coverage (also known as Coverage B), on the other hand, applies to other structures on your property aside from your primary dwelling structure.
What Does It Cover?
As mentioned above, other structures coverage applies to other constructions on your property other than your primary house. This means the coverage doesn't apply to natural structures in your compound or to your trees; it only covers the manmade structures in your compound. Additionally, for a structure to qualify for the coverage it must be detached from your main house.
Therefore, an attached garage is not applicable since it is considered part of the house. Specific examples of structures that qualify for Coverage B include fences, detached garages, storage sheds, gazebos, swimming pools, and driveways, among others.
How Much Is It?
Most home insurance companies represent other structures coverage as a percentage of the overall home insurance limit. The usual rate is 10%, which gives other structures coverage of $40,000 for a home with an insurance limit of $400,000. This may be low or adequate, depending on your circumstances.
What If You Don't Want It?
Other structures coverage is mandatory. The cost is automatically integrated into your homeowners insurance. Therefore, you can't say that you don't need the coverage and negotiate for reduced home insurance rates. This means even if you don't have any other structures on your property other than the main dwelling, other structures coverage is still part of your home insurance policy.
Do You Have Enough?
As you can imagine, other structures coverage might not be enough for those who have expensive structures on their properties. Say you have installed a swimming pool, a luxurious gazebo, a detached garage, and you also have a greenhouse where you like to grow your fresh food for your family; unless you have an expensive house, your Coverage B limit might not be enough to cover those structures. The good news is that even though you cannot do away with the coverage, you can increase it if there is need.
For more information, contact companies like ALTRE Insurance Agency Inc.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.