NYC Insurance Blog

What is Other Structure Coverage?

Homeowners insurance provides coverage for your house and other parts of your property. For example, if lightning strikes a guesthouse or fence, the other structure coverage in your homeowners insurance policy can help pay for repair or replacement costs. 

Other structures in your home include:

• Driveways and walkways
• Gazebos
• Fences
• Detached garages
• Sheds
• Docks
• Pergolas
• Detached patios and decks
• Guesthouses
• In-ground swimming pools

Understanding that other structure coverage usually covers the same perils as homeowners’ insurance is essential. Therefore, if your dwelling coverage includes risks like fire, theft, vandalism, or falling objects, your gazebo, fence, or guesthouse would likely be covered for the same perils. 

Is Other Structure Coverage Mandatory?

Although you are not legally required to buy other structure coverage, most mortgage lenders include homeowners’ insurance as a necessity when taking a loan. Consequently, homeowners’ insurance usually includes other structure coverage. However, if your mortgage is paid off or you want to pay cash for your home, you can do away with homeowners’ insurance. Buying homeowners insurance is highly recommended, especially if you do not have the financial resources to rebuild your home when disaster hits. Allow us to review and ensure you are fuly covered!

What Does Other Structures Insurance Not Cover?

Here are some of the perils not included in other structure coverage:

• Flooding – standard homeowners insurance does not cover flooding. Therefore, purchase flood insurance via the federal government or private insurers if you are in a flood-prone area.
• Earthquakes – most homeowners insurance policies do not include earth movement coverage, for example, landslides, sinkholes, earthquakes, and mudslides.
• Regular wear and tear – routine wear and tear of other structures in your property are not covered. Therefore, if the shingles on your guesthouse or detached garage wear out, other structure insurance won’t provide coverage.
• Structures used for business purposes – you need business insurance if you use one of the structures for business. For instance, if you run a small shop out of the shed or guesthouse, your homeowners insurance won’t cover the structures.

Wondering how much other structure coverage costs? Most insurance companies set other structure coverage at 10% of the dwelling coverage limit. Therefore, if your dwelling is insured for $200,000, you have $20,000 of other structures coverage. However, discussing your insurance needs with your agent to adjust your other structure coverage accordingly is essential. Call our Agency Today, to get a Free Quote on Homeowners' Coverage.

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