While the bulk of homeowner’s insurance has to do with your main dwelling, additional coverages can be added to cover other stuff on your property that you own. Here are some common home insurance types:
●Coverage A- Dwelling
●Coverage B- Other Structures on Your Property
●Coverage C- Personal Property/Contents
●Coverage D- Loss of Use
●Coverage E- Personal Liability Protection
●Coverage F- Medical Payments
You can check your homeowner’s policy declarations page to determine what coverage you actually have right now and determine if everything you own is covered adequately.
Do You Need Other Structure Coverage?
“Other structures insurance” or coverage B covers the cost of replacing or repairing structures on your property other than your main dwelling if they’re damaged due to a covered peril such as fire, wind, or hail. This might include detached garages, sheds, and other detached buildings on your property. Sometimes it also covers fences. As you know, fences can be costly, so it’s a good idea to have them covered as well.
Other structure coverage is typically 10% of whatever your main dwelling coverage is. If your home is covered for $100,000 then your other structure coverage will be up to$10,000. If you have an expensive shed or garage that is new or remodeled then you might require more insurance. You might also require more insurance if you have several detached buildings on your property. For example, if you have a detached garage, an updated shed, and privacy fencing around your yard, then you might quickly cap out your insurance if there is a huge disaster at only 10% of your dwelling coverage. Speak with your Oklahoma home insurance agent to help determine your specific needs. What Structures Are Not Covered
Under Coverage B (Other Structures)?
A building used to conduct your home business, or a guest house you rent out for income or as an Air BNB will typically not be covered. While a guest house you don’t earn income on could be covered, anything that is used as income would be a business and not a home expense and requires separate coverage.
Another gray area is in-ground pools. Some insurance companies will cover this along with the dwelling while others will consider it “other structures.” As always, consult your specific insurance company to see how your coverage is set up and what your limits are.
Homeowner’s insurance is one of those things you pay for in advance and hope that you never need to use it. Since most people don’t love paying for their insurance premiums, it could be beneficial for you to periodically check your policy and compare it to others that might fit your needs just as well at a lower rate. Contact us at Dorsey Insurance in Claremore, OK to get your Home Insurance Quote.