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 When Kelly and her husband built a guesthouse behind their Oklahoma City home, they pictured family visits, backyard barbecues, and maybe even a little rental income someday. The structure had everything—electricity, plumbing, and its own small kitchenette. Then came one spring hailstorm that left the roof dented and siding shredded. When Kelly called her insurance company, she was shocked to learn her detached guesthouse wasn’t covered the same way as her main home. For many Oklahoma homeowners, detached living spaces—guesthouses, studios, pool houses, and backyard offices—can fall into a coverage gray area. Here’s what to know before assuming your home insurance policy has you protected. What Counts as a Detached Structure?Most home insurance policies include a section called “Other Structures Coverage”, which typically covers property not physically attached to your main home. That can include:
But here’s the catch: these structures are usually only covered up to 10% of your home’s dwelling limit. That means if your home is insured for $400,000, your detached structures may only have $40,000 in total coverage—far less than what it might cost to rebuild or repair. When Detached Structures Might Not Be CoveredIf your guesthouse is used as a rental property or home office, your standard home insurance might not apply. Insurers treat income-producing or business-use structures differently because they carry higher liability risks. Some policies also exclude coverage if the structure isn’t declared during underwriting. If you added a new building or converted an existing one without updating your policy, your insurer might deny a claim. Liability Risks with Guesthouses and OutbuildingsLet’s say a visitor slips on the guesthouse stairs or a renter’s appliance causes fire damage—whose insurance pays? If the space is part of your property but not listed on your policy, the answer can get complicated. You could be left responsible for property damage or injuries out-of-pocket. That’s why it’s smart to review your liability coverage and add a separate endorsement or umbrella policy if needed. Upgrades and Additions That Change Coverage NeedsIf you’ve recently added:
…you should revisit your home insurance policy immediately. These upgrades can significantly increase both the replacement value and liability exposure of your property. Your agent can help adjust coverage limits or recommend a detached structure endorsement—an affordable add-on that ensures full protection for newer buildings on your property. Protecting More Than Just Your HomeIn Oklahoma City, where backyards are getting bigger and home improvements are on the rise, detached structures are becoming more common—and more valuable. But if you don’t update your policy, those additions might be sitting outside your coverage limits. At Oklahoma Insurance Professionals, we help homeowners across Oklahoma City and surrounding areas make sure their entire property is properly covered—from the house itself to the backyard workshop. If you’ve added or upgraded a detached structure recently, it’s a great time for a policy review. You’ll know exactly what’s covered, what’s not, and how to close any gaps before the next big storm hits. Contact Oklahoma Insurance Professionals today to review your policy and make sure your detached structures are fully protected.
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