When reviewing your homeowners insurance policy, you’ll notice it’s divided into several sections of coverage. While most homeowners are familiar with Coverage A (dwelling protection for your main house), Coverage B often flies under the radar—yet it plays an important role in protecting your property.
What Does Coverage B Protect?
Coverage B, formally known as “Other Structures,” provides protection for structures on your property that are not attached to your main dwelling. This may include:
- Detached garages and sheds
- Fences and gates
- Gazebos and pergolas
- Pool houses and cabanas
- Detached workshops or studios
- Guest houses (in some cases)
- Driveways, walkways, and retaining walls
How Much Coverage Do You Get?
Standard homeowners policies typically set Coverage B at 10% of your Coverage A limit. For example, if your home is insured for $400,000, you’d automatically have $40,000 in Coverage B protection.
However, this default amount may not be sufficient for everyone. If you have an expensive detached garage, extensive fencing, or multiple outbuildings, you should consider increasing this coverage. The good news? Adding additional Coverage B is usually quite affordable.
What’s Not Covered?
It’s important to understand Coverage B’s limitations. This coverage typically excludes:
- Structures used for business purposes
- Structures rented to anyone not part of your household (unless used solely as a private garage)
- Land itself, including landscaping
The Bottom Line
Walk around your property and consider what it would cost to rebuild your detached structures after a covered loss. Then check if your Coverage B limit is adequate. Your independent agent can help you determine if you need additional protection.