Every structure on the property that is not the house itself falls under Coverage B, and most homeowners have never checked what that limit is. It is usually set as a percentage of Coverage A by default, which means it was chosen by a formula rather than by looking at what is actually standing in the yard.
What Coverage B covers
The test in most forms is separation from the dwelling. A structure set apart from the house, or connected to it only by a fence, utility line or similar connection, is an other structure.
Common examples:
- A detached garage or carport
- A shed, workshop or barn
- A fence, gate or retaining wall
- A driveway, walkway or in-ground pool depending on the form
- A guest house, studio or detached in-law unit
- A gazebo, pergola or permanent playset
- A well house, pump house or permanently installed generator enclosure
- A mailbox, flagpole or permanently mounted light
- A ground-mounted solar array not attached to the house
The perils and the deductible are generally the same as the dwelling. In wind-exposed markets, a percentage wind and hail deductible or hurricane deductible calculated on Coverage A may apply to an other-structures loss as well, which can leave a modest fence claim entirely inside the deductible. See hurricane, wind and hail deductibles.
What sits on the other side of the line
Attached structures. An attached garage, a deck fastened to the house, a screened porch and a sunroom are generally part of the dwelling under Coverage A, not Coverage B. That is usually to your advantage, since Coverage A is the larger limit.
Land itself. Coverage is for structures, not for the ground. Erosion, subsidence and regrading are generally not covered; see sinkholes, landslides and earth movement.
Landscaping. Trees, shrubs, plants and lawns are personal property with their own narrow perils and low caps. See when a tree falls.
Contents of the structure. What is inside the shed is personal property, subject to the Coverage C limit and its sublimits, not to Coverage B. Losing a detached garage with tools, bicycles and an ATV inside is at least two coverages and possibly three.
Structures used for business. Most forms exclude or restrict coverage for a separate structure rented out or used for business purposes. A workshop where you run a trade, a studio you rent to a tenant, and a barn used commercially all raise this. See running a business from home and landlord insurance.
Structures rented to others for dwelling purposes. A detached unit rented as a residence generally needs different treatment, often a separate policy.
The limit is easy to outgrow
The default percentage was set against a typical property. Yours may not be typical.
Add up realistically what it would cost today to replace:
- The detached garage, at current construction costs including the slab
- Every run of fence, at current per-foot installed cost
- The pool, the deck around it and the enclosure
- Retaining walls, which are expensive and frequently forgotten
- The shed, the workshop and anything with a foundation
- The driveway if your form includes it
Fencing alone surprises people on a large lot. So does a retaining wall, which is engineering work rather than carpentry. A property with several structures can exceed the default Coverage B limit by a wide margin, and a single storm can damage all of them at once, which is exactly when the aggregate matters.
Raising the limit is usually inexpensive and is done by endorsement. It is one of the items worth walking through in home policy endorsements worth knowing.
Detached units and ADUs
A detached guest house, in-law unit or accessory dwelling unit is the hardest case, because the answer depends on how it is used.
- Unoccupied or used by family without rent, it is often an other structure, subject to the Coverage B limit being adequate for what is effectively a small house.
- Rented to a tenant, most forms restrict or exclude it, and a separate policy or a specific endorsement is usually needed.
- Rented short term, the same problem appears with additional liability questions. See short-term rentals.
Tell your insurer the actual use. An undisclosed rental unit is the kind of fact that surfaces during a claim investigation and can support a denial or rescission.
Structures under construction
A structure being built on the property occupies an awkward position. Materials on site, work in progress and the contractor's own coverage all interact, and a standard homeowners policy is not a builder's risk policy. Talk to your insurer before the work starts rather than after a storm hits an unfinished frame. See renovations and home insurance.
Liability follows structures too
A detached structure is a liability exposure as well as a property one. A pool, a treehouse, a workshop with power tools and an unstable retaining wall all raise questions under personal liability coverage, and insurers underwrite several of them directly. See home liability: pools, dogs and trampolines and what home underwriters look for.
A short checklist
- Find the Coverage B limit on your declarations page.
- List every separate structure and estimate current replacement cost for each.
- Compare the total to the limit, not each structure individually.
- Confirm which deductible applies, particularly in a percentage-deductible market.
- Disclose any structure used for business or rented out.
- Photograph the structures and keep the record with your home inventory.
- Revisit after you build anything, including a fence.
What counts as an other structure, the default percentage, whether driveways and pools are included, how business or rental use is treated and which deductible applies all vary by insurer, by policy form and by state, and the policy documents control. For your own situation, speak with a licensed agent or your insurer. You can also request home insurance quotes and get connected with licensed providers in your area.