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Write something about yourself. No need to be fancy, just an overview.
Oklahoma Insurance Professionals LLC Blog |
Write something about yourself. No need to be fancy, just an overview.
When safeguarding your home, the focus often centers on the house itself. But what about the valuable structures in your yard? Understanding home insurance, particularly the coverage for detached structures, is essential for comprehensive protection. This often-overlooked element can mean the difference between a minor setback and a major financial loss. Detached structures, often termed "other structures," can include items like sheds, fences, and gazebos. Knowing the importance of coverage for these structures ensures homeowners can replace or repair them in the event of damage. Recognizing what qualifies as an "other structure" and learning about common exclusions lays the groundwork for effective insurance planning. What is Other Structures Coverage?Other Structures Coverage is a component of a standard homeowners insurance policy that provides financial protection for structures on an insured property that are not attached to the main dwelling. These detached structures can include garages, sheds, swimming pools, guest houses, and even features like concrete floors and garage doors. Typically, coverage for these structures is set at 10% of the dwelling coverage limit. For example, if the Dwelling Coverage limit (which covers the primary residence) is $200,000, then the coverage for other structures might be $20,000. This coverage protects against the same perils as the main dwelling, such as fire or storm damage. However, it does not cover normal wear and tear or earth movements. Should the value of additional structures exceed the standard policy limit, homeowners can purchase additional coverage for full protection, particularly for structures like prefab garages or metal garage buildings. For liability, such as someone being injured in your detached garage, your homeowners policy's liability coverage would apply rather than your structures coverage limit. Why Other Structures Coverage MattersWhen considering a homeowners insurance policy, one crucial component is coverage for other structures on your property, which is separate from the main dwelling. Structures such as detached garages, sheds, and even swimming pools fall into this category. A standard homeowners policy typically includes this type of protection, but reviewing the coverage is important. 'Other Structures Coverage,' also known as Coverage B, helps protect the financial investment in your entire property. A detached garage or a guest house adds value to your home and faces similar risks as the main house, including fire, theft, or storm damage. It’s essential to understand that coverage limits for detached structures are typically set as a percentage of the dwelling coverage limit. For example, if your home is insured for $200,000, your detached structures might be covered up to $20,000. If you need more coverage, it’s wise to consider increasing this limit. While this coverage extends to many perils, it may not cover damage from normal wear and tear or earth movements. What Qualifies as an "Other Structure"?Understanding what qualifies as an "other structure" can affect your insurance coverage. Typically, an "other structure" is defined as a building on your property that is detached from the main dwelling. These structures must not be used for business purposes and should be separate in terms of utility connections or simply unattached to the main residence. Common examples of detached structures include:
Typical Exclusions in CoverageWhile other structures coverage offers significant protection, there are exclusions to be aware of:
Limitations of Other Structures CoverageOther structures coverage typically has limits, usually around 10% of the dwelling coverage. For example, if your dwelling coverage is $200,000, your detached structures will likely be covered up to $20,000. But some structures, such as a guest house or custom-built shed, may exceed this limit. If your policy's coverage isn’t enough for higher-value structures like a fully outfitted detached garage, you can purchase additional coverage to make sure everything is adequately protected. Coverage for structures used for business purposes is typically not included in homeowners insurance. You may need to purchase additional business insurance for those structures. Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)Understanding the distinction between Actual Cash Value (ACV) and Replacement Cost Value (RCV) is important for how insurance companies value structures during a claim.
Protecting Your Detached StructuresUnderstanding your home insurance policy's coverage for detached structures ensures that all parts of your property, from the main home to the shed or guest house, are protected. Standard policies cover many detached structures, but it's essential to review your policy limits, consider exclusions, and assess whether additional coverage is needed. For residents in Oklahoma City and beyond, Oklahoma Insurance Pros is available to help you navigate your coverage needs. By reviewing your policy and considering additional protections, you can rest assured knowing that all aspects of your home are protected.
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