Standard home insurance policies devote 10% of the coverage for the main dwelling coverage towards other structures on the property which would include detached garages or fences and a multitude of other items. Your plan will outline the protection that these structures obtain as Coverage B, while the main dwelling has its protection provided under Coverage A.
Both Coverage A and B work primarily the same as in a shed, for instance, would be covered against a windstorm’s damage, while the exclusions that apply to your main residence would extend to the other structures on the property as well. Coverage B does have particular rules for other kinds of structures it excludes.
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Which Structures Are Reimbursable Under Coverage B of Homeowner’s Insurance
Coverage B will protect most all of the structures that are on your premises whether they be completely detached and separate from the main residence or connected in some way via electric wiring or pipes. Some examples of what may be considered as other structures that various carriers at times opt to reimburse under Coverage B:
- Detached garages
- Pool houses
Coverage B will cover these structures from the basic perils that Coverage A protects the main dwelling from, e.g. fire, wind, lightning, accidental water damage, automobile destruction. There is also protection against falling objects such as trees falling onto one of your structures, if you were not found to be neglecting the property in the time prior to the time of the accident.
When Coverage B Doesn’t Reimburse For Property
Coverage B does have limitations and exclusions that apply and will affect which structures will be covered by the standard homeowner’s insurance. The actual land where the property is located is not something that will be taken care of under Coverage B.
Policy B also won’t cover any structures that you are renting out for tenants, e.g. a guesthouse may not be protected if you’re using it as an AirBnB.
Any structures on your property that you may be using for any type of business purposes won’t be reimbursable for Coverage B. If you are using your barn for the purpose of commercial farming that is not covered under your homeowners insurance policy. This would be something that would require you to purchase special insurance in order to have coverage.
Protection Under Coverage B
It is possible to increase your coverage under Coverage B by increasing the policy’s main dwelling protection limits. When you’re purchasing your insurance policy, it’s important to determine the replacement value of the property’s other structures and allot the appropriate amount of security to protect the loss of the main dwelling and that of those structures as well. Endorsements or riders can be purchased to protect any type of valuables that may be kept within the structures.
It requires a lot of thought and talking with your agent to ensure that you have the proper amount of protection with both Coverage A and B to sustain any type of loss to your property.