Home Insurance Other Structures Coverage: Are You Underinsured?
If you’ve never given much thought to your “Coverage B,” don’t worry – you are not alone. But with the cost of building materials going nowhere but up, it’s time we had a little chat.
Coverage B, also known as Other Structures coverage, is a part of your Homeowners, Landlord, or other property policy that protects everything on your property that’s not attached to your main house/building. Think:
- Swimming pools
- Fences and walls
- Patios, pergolas, gazebos
- Detached garages
- Sheds and workshops
Basically, if the structure is completely separate from your main home – like not physically connected by a shared wall or roof – it likely falls under Coverage B.
Other Structures coverage insurance limit
Most insurance policies automatically set Coverage B to 10% of your Dwelling limit. So, if your home is insured for $600,000, your “other structures” are capped at $60,000.
Now, think about the cost of rebuilding a fancy pergola, repairing storm-damaged fencing, or replacing that dreamy backyard pool. Would that 10% still cut it?
For many property owners – especially here in California, where everything costs more than it should – the answer is often no.
Higher limit of Other Structures coverage matters more than ever
Lumber, labor, concrete, tile, even fencing materials have all gone up in price. What cost $10,000 to build a few years ago might now run double. That means a total loss to a detached garage or a high-end patio setup could leave you footing part of the bill – even though you thought you were fully insured.
And if you are a landlord, an underinsured outdoor structure could delay repairs and lead to unhappy tenants or even legal trouble. No one needs that kind of headache.
What you can do now:
- Review your policy’s Coverage B limit. Check that 10% figure and compare it to what it would cost to rebuild or repair all detached structures on your property.
- Talk to your insurance broker (hi, that’s us!). We can help you run the Reconstruction Cost Estimate and adjust your policy limits accordingly. Sometimes, just a small premium change can get you the coverage you actually need.
- Don’t wait until claim time to find out you are underinsured. At that point, it’s too late.
Bottom line:
Rising costs = rising risk. So, if you are wondering whether your Home insurance Other Structures coverage is up to par, it’s time to take a closer look.
