Last Updates: 04-September-2026
Your homeowners policy protects more than the place you live in, but understanding how that protection works for property around your home can prevent unpleasant surprises after a loss. Other structures coverage is an important part of homeowners insurance for homeowners who have property beyond the main residence. Knowing how this coverage fits into your overall policy can help you make informed decisions, avoid gaps in protection and feel more confident about the insurance you carry.
What Does Other Structures Coverage Protect?
Other structures coverage is designed to help pay for damage to structures on your property that are not physically attached to your house and it is commonly included with dwelling insurance or homeowners insurance. This can include a Fence, detached garage, Shed, Gazebo, Guesthouse, Driveway, Dock or Pool, depending on your insurance policy.
If these detached structures suffer structural damage, fire damage or storm damage, your property coverage may help with repair costs or rebuilding costs. However, coverage usually applies to the damaged structures themselves, not what is stored inside them. For example, if a Shed catches fire and is destroyed, other structures coverage may help you rebuild it, but tools, gardening supplies and other stored items may fall under personal property insurance instead.
In my experience reviewing homeowners insurance policies, this distinction is easy to overlook because personal property and the structures themselves can be damaged by the same event. Your belongings and items inside may have separate insurance coverage, while the homeowners insurance deductible still applies to a covered claim.
For example, if a storm causes $5,000 in damage and your deductible is $1,000, you are responsible for paying the first $1,000, while the insurer may pay the remaining $4,000, subject to your policy limits and terms.
Swimming Pool Coverage: What to Know
Other structures insurance may provide pool coverage for a swimming pool, but how your insurer treats an in ground pool can depend on whether it is considered part of your dwelling coverage or other structures. If the pool is attached to your home, its structural coverage may be handled differently from a separate pool, while a walkway or enclosure may also have its own treatment under the policy.
A portable above ground pool, above ground pool or portable pool may instead fall under personal property coverage, depending on your homeowners insurance or dwelling insurance terms. Because pool replacement can be expensive, check with your insurance company to confirm the appropriate section, policy limit and coverage limit before assuming your damaged pool is fully covered.
Make sure the limit is high enough to cover it, especially if you are replacing a damaged pool; otherwise, your other structures coverage or property coverage may not provide enough protection.
Do You Need Other Structures Coverage?
Other structures coverage is not usually legally required, but mortgage lenders may require homeowners insurance that includes protection for your home and certain detached structures as part of the mortgage requirement for borrowers. This can include a driveway, sidewalk or other structures on your property, depending on the homeowners policy.
Even if your mortgage is paid off or you are paying cash for your home, keeping this insurance coverage can help reduce your financial risk after a disaster or disaster damage. Without enough structural coverage and property protection, you may have to use your own money to rebuild your home, rebuild damaged structures or handle unexpected rebuilding costs.
The right coverage depends on your property and the level of risk you are comfortable carrying, so review your insurance policy to make sure it provides suitable protection.
What Can Other Structures Coverage Help Pay For?
Other structures coverage can help pay to repair or rebuild detached property that is covered after certain disasters, rather than damage to your main house. Depending on your homeowners policies, policy type and whether your coverage is written on a named perils basis or open perils basis, covered causes may include fire, lightning, Windstorm, hail, Explosion, Riot, civil commotion, Smoke, malicious mischief, Theft, Volcanic eruption, falling object, weight of ice, snow, sleet, freezing and certain water or steam events.
Some policies may also cover sudden, accidental tearing apart, cracking, burning or bulging of household systems, appliances or damage caused by artificially generated electric currents, vehicles or aircraft, while other policies specifically exclude certain causes.
The key is to check your insurance policy because property damage, structural damage, disaster coverage, accidental damage, water damage and electrical damage can vary by policy; your agent or insurer can explain exactly what your other structures coverage will help pay for and what is excluded under your homeowners policy.
Actual Cash Value vs. Replacement Cost: Key Differences
| Actual Cash Value | Replacement Cost |
| Pays based on the depreciated value of your property | Pays based on replacement costs today |
| Accounts for depreciation and the item’s worn value | Focuses on the cost to rebuild or replace the insured property |
| Example: A fence that cost $8,000 five years ago may have a $6,000 current value | If replacing that fence costs $10,000, the policy may cover the eligible rebuilding cost up to the coverage limit |
| The insurance payout may be lower | You may receive more reimbursement toward replacement value |
The difference between actual cash value and replacement cost can make a major difference when filing a claim under other structures coverage for detached buildings, sheds, garages or fences after a storm.
With actual cash value, your homeowners policy considers the depreciated value of the damaged property before calculating the payout, while replacement cost generally focuses on what it would cost to replace the property with similar materials and quality today.
For example, if a fence originally cost $8,000 five years ago and its worn value is now $6,000, actual cash value coverage may base the payment around that lower amount, while replacement cost could consider the $10,000 needed to replace it today, subject to your deductible, policy details and coverage limit.
The same principle can apply to dwelling coverage, homeowners insurance and broader property coverage, so checking your insurance coverage before damage occurs can help you understand how much reimbursement you may receive for replacement and rebuilding cost.
What Isn’t Covered by Other Structures Insurance?
Homeowners policies usually come with a detailed list of exclusions, meaning there are things they won’t cover even when you have broad insurance coverage. Some of the most common home insurance exclusions may include flood or earthquake damage, normal wear and tear, poor maintenance, pest damage and structures used mainly for business, although the exact policy wording can vary.
These common exclusions are important because coverage limitations can leave certain uncovered items or excluded risks outside your homeowners insurance protection. In my experience, homeowners often focus on what their policy covers and overlook insurance policy exclusions, so it is worth reviewing the exclusions section carefully before assuming a particular loss is protected.
Flood Damage
Other structures coverage generally does not cover flood damage caused by heavy rain, an overflowing river or water seeping into a shed and causing water damage. A standard homeowners policy may provide broad insurance coverage for many types of property damage, but flood insurance is typically separate, especially in at risk areas.
Homeowners insurance and a standard policy may therefore leave shed damage and other other structures exposed to flood risk, depending on the policy. Federal government programs and private insurers may offer federal coverage or private flood protection, but coverage limitations can still apply.
Before relying on other structures coverage for flood related losses, check your homeowners policy and ask about specific other structures coverage and available flood insurance coverage.
Earth Movement and Ground Damage
Earth movement is often among the coverage exclusions in standard homeowners policies, so earthquakes, sinkholes, landslides and mudslides may not receive coverage under a typical homeowners policy or homeowners insurance plan.
If a disaster causes property damage, your standard insurance policy may therefore provide excluded coverage for the loss, depending on its exact terms. Homeowners who want stronger disaster protection can consider extra coverage, additional insurance or optional coverage, such as earthquake insurance for earthquake coverage, sinkhole coverage for sinkhole coverage or separate landslide coverage and mudslide coverage where available.
Because insurance coverage and coverage exclusions vary by location and policy, check your insurance policy before assuming ground related damage is protected.
Business Use and Other Structures Coverage
A homeowners policy may provide shed coverage for a personal Shed or guesthouse, but using these structures for business use can create policy limitations or excluded coverage. For example, if you run a landscaping company and keep landscaping equipment in a shed or operate a small shop from a guesthouse, the commercial activity, shop operations and business property may not receive the same insurance coverage as personal property.
Homeowners insurance may also exclude business related structures, excluded structures or property used for regular business operations, so relying only on homeowners insurance could leave your property protection incomplete. If your Shed, guesthouse business or other structure supports business activities, consider additional insurance, business insurance or commercial insurance designed to cover the relevant structures, business property and equipment.
Wear and Tear
Insurance can act as a financial safety net when sudden problems or accidental problems damage your property, but it generally does not pay for damage caused by wear and tear, deterioration or normal home maintenance. For example, an aging fence, rotting fence, worn out shingles or an old Shed that gradually develops fence damage, leaks or other issues may fall under excluded damage rather than insurance coverage.
Home insurance is not designed to pay routine maintenance costs, shed maintenance or regular structural upkeep, so homeowners are usually responsible for keeping aging structures in good property condition through property maintenance and routine maintenance. However, if a properly maintained structure suffers sudden damage or accidental damage, your insurance protection may apply depending on the policy, making it important to distinguish normal aging from a covered event.
Pest and Infestation Damage
Most Insurers expect homeowners to take reasonable steps toward preventing damage, so problems caused by termites, mice, pests and other pests are often considered a maintenance responsibility rather than a covered loss.
A typical insurance policy or homeowners policy may therefore exclude infestation, infestations, pest damage, termite damage and mouse damage, including property damage or structural damage that develops gradually. Home insurance generally does not pay for pest control, pest prevention, routine maintenance, routine upkeep, cleanup or clean up and policy exclusions can leave excluded damage, repair and repair costs to the homeowner.
However, if pests cause associated damage or repair associated damage after a separate covered damage event, some insurance coverage may apply depending on the policy and insurance claim, so maintaining good property maintenance and taking reasonable damage prevention steps can help protect your home.
Choosing the Right Other Structures Coverage Limit
Other structures coverage is often set by insurance companies at around 10% of your dwelling coverage limit, so if your dwelling insured amount is $300,000, the default amount may be $30,000. That coverage limit can be enough for some detached property and common repairs, but larger replacements may require more.
For example, Angi, a home services website, lists costs that can vary widely: a new shed may cost about $300 to $30,000, fence repair around $950, fence replacement about $1,860 to $4,840, a new detached garage around $19,200 to $33,600, concrete pool surface repair or concrete pool resurfacing about $10,000 to $20,000, fiberglass pool liner repair or fiberglass pool resurfacing around $6,500 and driveway repaving about $1,400 to $12,100.
Since repair costs and replacement costs can quickly exceed your other structures coverage limit, consider the value of your detached structures, expected property repairs and overall insurance coverage before choosing your coverage amount. If your dwelling limit has changed or you have added a garage, pool or other structure, ask your insurance agent or insurer whether you should adjust coverage.
Understanding the Cost of Other Structures Coverage
The cost of other structures coverage is usually part of your overall homeowners insurance price rather than a separate charge, so your insurance premium depends on factors such as your coverage needs, insurance companies, location and geographic location.
According to NerdWallet’s rate analysis, the average cost of homeowners insurance in the U.S. is $2,490 per year, but your actual insurance cost, insurance rate and annual cost can be different based on where you live, your property insurance needs and the value of your detached structures.
When reviewing homeowners coverage, consider whether your policy provides enough other structures insurance for your property, because a higher coverage amount can affect the overall policy cost while providing greater financial protection. Comparing insurance rates from different providers can also help you find cheapest homeowners insurance, but the lowest home insurance price is not always the best choice if it leaves your detached structures underinsured.
Final Thoughts on Other Structures Coverage
The right other structures coverage can give homeowners greater confidence that important parts of their property are not overlooked when unexpected loss occurs. Before renewing or changing your policy, review the limits, exclusions, valuation method and condition of the structures on your property. It is also wise to discuss any changes to your property with your insurance professional so your coverage continues to match your circumstances. A careful policy review can help reduce coverage gaps and make the claims process easier when you need your insurance most.
Disclaimer
As a researcher, I have prepared this article using publicly available insurance information and research to explain other structures coverage in simple terms. Insurance rules, coverage limits, exclusions, costs and policy terms can vary by insurer, state, property and individual circumstances. This content is for general informational and educational purposes only and should not be considered insurance, legal or financial advice. Always review your policy documents and confirm coverage details, limits and exclusions directly with your licensed insurance professional or insurer before making a coverage decision.
Note: The prices and cost figures mentioned in this article are provided for research and informational purposes only. Insurance rates can change at any time based on factors such as location, coverage, insurer and market conditions. For the most accurate and current pricing, coverage options and policy details, contact a licensed insurance professional or your insurance company directly.
Follow Our Social Accounts:
FAQS
Can You Rent Out an Other Structure on Your Property?
You may be able to rent out a guesthouse or detached structure, but rental use can create policy limitations under a standard homeowners policy. If the structure is primarily used for commercial use, rental income or other business use, you may need landlord coverage, additional insurance or separate building coverage. Ask a local insurance agent about your insurance needs, coverage options and coverage requirements to ensure the rental property has suitable property protection.
Is Other Structures Coverage Optional on a Homeowners Policy?
Other structures coverage is generally automatically included in standard policies from many insurers, rather than being completely optional coverage. Your standard homeowners policy may set a minimum amount or minimum coverage for detached structures, with a specific coverage limit and coverage amount. While some insurance companies may allow you to drop coverage or remove coverage, this depends on the insurance policy, policy terms and coverage requirements. Check your homeowners insurance, property insurance and homeowners coverage to understand what included coverage, required coverage and insurance protection apply to your property.
Hi, I’m Shumail, an independent insurance researcher and content writer. I research different insurance topics and explain them in simple and easy language so that general readers can understand them better.
I am not an insurance agent, broker, lawyer, or service provider. I do not sell any insurance products or offer any financial services. The information shared on this website is purely for educational and informational purposes only.
My goal is to help people understand insurance concepts, policies, and basic guidelines in a clear and simple way through well-researched content.
