insurance

Other Structures Coverage

A component of homeowners insurance that covers detached structures on your property such as garages, sheds, fences, and gazebos. This coverage is typically a percentage of your dwelling coverage amount, usually 10% of Coverage A.

Example

“When lightning struck and destroyed Mark's detached garage, his other structures coverage paid $15,000 to rebuild it, which was 10% of his $150,000 dwelling coverage limit.”

Memory Tip

Think 'OTHER than the house' - this covers all the other buildings on your property that aren't your main home.

Why It Matters

Many homeowners have valuable detached structures that represent significant investments, from custom garages to pool houses. Without adequate other structures coverage, you'd have to pay out of pocket to rebuild or repair these structures after a covered loss.

Common Misconception

Many homeowners don't realize this coverage is limited to a percentage of their dwelling coverage and may not be sufficient for expensive outbuildings. Some also think it covers structures used for business purposes, but these typically require separate commercial coverage.

In Practice

Karen's home is insured for $300,000 under Coverage A, which automatically provides $30,000 in other structures coverage (10%). Her property has a detached two-car garage worth $25,000 and a storage shed worth $8,000, totaling $33,000 in other structures. When a tree falls and destroys both buildings, she faces a $3,000 shortfall because her other structures coverage limit is only $30,000. She could have increased this coverage to 20% of dwelling coverage for about $50 more annually, which would have provided $60,000 in coverage and fully protected her investment.

Etymology

This coverage category emerged in standard homeowners policies in the mid-20th century as properties became more complex with multiple buildings and insurance companies needed to clearly define what constituted the main dwelling versus auxiliary structures.

Common Misspellings

other structures coveregeother structure coverageother structures covergeother structers coverage

Related Terms

Dwelling Coverage homeowners insurance

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