Other Structures Coverage

Example

“After a tree fell on their detached garage during the storm, the Martins filed a claim under their other structures coverage, which provided $20,000 to rebuild the garage that housed their cars and workshop.”

Memory Tip

Think 'Other = Outbuildings' - this covers all the other buildings on your property that aren't your main house.

Why It Matters

Many homeowners have valuable detached structures like garages, workshops, or storage buildings that represent significant financial investments. Other structures coverage ensures these buildings are protected against the same perils as the main house, preventing homeowners from facing large out-of-pocket expenses to rebuild or repair these structures.

Common Misconception

Some homeowners believe that all structures on their property are automatically covered under their main dwelling coverage, but detached structures require separate coverage limits. Others assume the coverage amount is unlimited, when it's typically only 10% of the dwelling coverage amount unless specifically increased.

In Practice

Mike has a homeowner's policy with $300,000 dwelling coverage, which automatically provides $30,000 in other structures coverage (10% of dwelling amount). His detached garage and workshop are destroyed by fire, with rebuilding costs of $45,000. His policy pays the $30,000 limit, leaving Mike responsible for the remaining $15,000 unless he had previously purchased additional other structures coverage.

Etymology

Named for covering 'other' structures beyond the main dwelling, with 'structure' from Latin 'structura' meaning something built or constructed in an organized way.

Common Misspellings

Related Terms

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Other insurance terms you should know

See Also