Other Structures

Other structures coverage, labeled Coverage B on a homeowners policy, pays for damage to detached buildings and permanent structures on your property that are not physically connected to the main home.

What does other structures coverage include?

A detached garage, a garden shed, a wood privacy fence, a carport, a gazebo, an in-ground pool enclosure, a barn, or a workshop all qualify as other structures. The central requirement is that the structure is separate from the primary dwelling and located on the same insured property. Structures used primarily for business purposes or rented out to non-residents may be excluded or subject to separate coverage, depending on your policy form.

How is the Coverage B limit calculated?

The standard other structures limit is 10 percent of Coverage A, your dwelling coverage limit. On a $400,000 dwelling limit, that gives $40,000 for all detached buildings and fences on the property combined, every outbuilding and fence sharing that one pool of money. For most suburban lots with a modest shed and perimeter fencing, that figure holds up. For properties with a large detached garage, a finished workshop, a pool enclosure, and substantial fencing, $40,000 can fall well short of actual replacement cost. For example, a detached three-car garage can cost $60,000 to $120,000 to rebuild depending on size and finish level, which alone exceeds a standard Coverage B limit on a $400,000 home.

Why do Georgia properties often need more Coverage B than the default?

Georgia properties frequently carry more other structures exposure than a quick inspection suggests. Rural and semi-rural lots in counties like Cherokee, Hall, and Forsyth routinely include a detached workshop or barn alongside the main home. Coastal properties near St. Simons or the Golden Isles frequently have covered pavilions, detached carports, and pool enclosures — structures that are expensive to replace after a named storm or severe hail event. For example, a privacy fence enclosing a standard suburban Atlanta lot of 250 to 400 linear feet can carry $12,000 to $35,000 in replacement cost on its own, and that total does not include any outbuildings.

When does the standard Coverage B limit fall short?

Inventorying every detached structure on a property and estimating what each would cost to replace at today’s construction prices quickly reveals whether the standard 10 percent limit is adequate. A privacy fence plus a detached two-car garage plus an in-ground pool enclosure can easily total $80,000 to $150,000 in replacement cost, well above the $40,000 Coverage B limit on a $400,000 dwelling. Coverage B can typically be increased independently from Coverage A for a modest additional premium, and carrying $10,000 to $20,000 in additional other structures coverage costs far less per year than the gap it closes after a loss.

What does other structures coverage not pay for?

Coverage B does not pay for structures used primarily for business purposes, structures rented out to non-residents, or damage caused by perils not covered under the policy form. Flood damage to a detached garage, for instance, is excluded from a standard homeowners policy the same way flood damage to the main home is excluded — separate flood coverage is needed to protect detached structures from rising water. A coverage review is the practical way to match Coverage B limits to what is actually on the property and identify any gaps. Learn more about home insurance options available through Olive Cover.