Is a Detached Garage Covered Under Homeowners Insurance?
Homeowners insurance typically covers detached structures such as a garage, but coverage may vary based on the policy and its specifics.
It is crucial to review your policy and, if necessary, add additional coverage for detached structures. For a comprehensive understanding of homeowners insurance and related topics, explore my dedicated Quora Profile on Home Insurance.
Understanding Coverage Limits and Policies
Most typical homeowners policies extend coverage to Other Structures based on a percentage of the limit of coverage on the Dwelling. The percentage of Dwelling coverage assigned to Other Structures is typically 10-20%. This limit can be increased and is in addition to the Dwelling limit.
Insider Tip: Other structures used for business purposes are typically excluded in the standard contract language. If you use a detached structure on your property for business, this should be discussed with your insurance agent or company representative.
What Constitutes Coverage?
Under the definition of appurtenant structures, a detached garage is generally covered. This category also includes things like fences, satellite dishes, awnings, barbecues, constructs, and anything permanently mounted or affixed to the property, but not considered to be a part of the house. The amount of coverage will generally range from 10 to 20% of the coverage for the home.
However, the perils that these outbuilding type risks are covered for may not be as broad as the All Risk coverage that usually attends to the home. Therefore, don't assume there is always coverage even if the home itself may have been covered for the same cause of damage.
HO3 Homeowners Insurance Policy Example
For an HO3 Homeowners Insurance Policy, a detached garage would most likely be covered under Other Structures.
Other structures coverage is the part of a homeowners insurance policy that helps pay to repair or replace structures other than your home, such as a fence, if they are damaged by a covered risk. For instance, if a tree falls on your detached garage, other structures coverage may help pay for repairs.
According to Allstate, this means understanding what exactly constitutes a separate structure can sometimes be more complex than you think.
Seek Professional Advice
Talk with your independent agent today to discuss and confirm that you have sufficient Other Structures coverage. Do not assume coverage is automatically provided or sufficient without an in-depth review.
Understanding the intricacies of your homeowners insurance policy is crucial for protecting your property effectively. Stay informed and proactive in managing your coverage needs.