Other Structures Coverage: Detached Garage, Shed, and Fence

What Qualifies as an Other Structure

The defining characteristic of an other structure is that it is located on your property but not physically attached to your main dwelling. The moment a structure connects to your home by a shared wall, roof, or foundation, it becomes part of the dwelling and falls under Coverage A instead. An attached garage is dwelling coverage; a detached garage ten feet from the house is other structures coverage.

Common examples of covered other structures include detached garages and carports, tool sheds and storage buildings, fences and gates, gazebos and pergolas, in-ground swimming pools, detached workshops and studios, guest houses (not rented for income), barns on non-farm residential properties, retaining walls, driveways and walkways (in some policies), basketball courts and permanent play structures, and mailboxes and lamp posts.

Structures connected to the dwelling only by a fence, utility line, or similar connection are generally classified as other structures, not part of the dwelling. The physical connection must be structural, meaning a shared wall, roof, or foundation, to qualify for dwelling coverage.

Coverage Limits and the Shared Pool

The standard Coverage B limit is 10% of your dwelling coverage amount. On a $400,000 dwelling policy, that provides $40,000 for all other structures combined. This is a critical point: the $40,000 is a shared pool, not a per-structure limit. If you have a detached garage worth $25,000, a shed worth $5,000, a fence worth $8,000, and a gazebo worth $6,000, the total value of your other structures is $44,000, which already exceeds the $40,000 limit.

If a single event damages multiple other structures, all claims draw from the same pool. A tornado that destroys your garage and fence simultaneously produces a combined claim against your $40,000 limit. If the total damage exceeds the limit, you absorb the difference out of pocket.

Most insurers allow you to increase your Coverage B limit with an endorsement. The cost is relatively modest because other structures claims are less frequent and typically smaller than dwelling claims. If your other structures have a combined replacement value exceeding 10% of your dwelling coverage, increasing the limit is straightforward and worth the small premium increase.

What Coverage B Excludes

Structures used for business. If you use a detached structure for business purposes, such as renting out a guest house, operating a workshop open to customers, or running a daycare from a detached building, that structure may be excluded from Coverage B. Business-use structures typically require a commercial property policy or a specific business-use endorsement.

Structures rented to non-residents. A guest house or apartment that you rent to someone who is not a member of your household is generally excluded from Coverage B. Rental properties require landlord or dwelling fire coverage. However, a structure rented exclusively to a household member or used for personal guests remains covered.

Structures on land you do not own. If you have a structure on neighboring property, easement land, or leased land, Coverage B may not apply. The structure must be on the insured property, which is the land associated with your dwelling.

Excluded perils. Coverage B follows the same peril structure as your dwelling coverage. Under an HO-3, other structures are covered on an open-perils basis, meaning everything is covered except the listed exclusions (flood, earthquake, wear and tear, pest damage, neglect, and other standard exclusions).

Detached Garages

Detached garages are often the most valuable other structure on a residential property. A standard two-car detached garage costs $20,000 to $50,000 to rebuild depending on size, materials, and whether it includes electrical, plumbing, or heating systems. If your detached garage includes a finished workshop, storage loft, or attached apartment, the replacement cost can be significantly higher.

Contents stored in the detached garage are covered under your personal property coverage (Coverage C), not Coverage B. Tools, lawnmowers, bicycles, sporting equipment, and seasonal items in the garage are personal property. The garage structure itself, including the foundation, walls, roof, doors, and permanently installed fixtures, falls under Coverage B.

Sheds and Outbuildings

Storage sheds, which range from small prefabricated units worth a few hundred dollars to large custom-built structures worth $10,000 or more, are covered under Coverage B. For inexpensive sheds, the Coverage B limit is rarely an issue. For homeowners with larger outbuildings, such as detached workshops, barns, or pool houses, the 10% limit can be a concern.

Prefabricated sheds that sit on the ground without a permanent foundation may be classified as personal property rather than other structures by some insurers. The classification depends on whether the structure is considered permanent or movable. Anchored sheds with foundations are clearly other structures; lightweight sheds placed on gravel pads may fall into a gray area.

Fences and Retaining Walls

Fences are among the most commonly claimed other structures because they are exposed to weather, vehicle impact, and falling trees. The coverage applies to the fence structure itself, including posts, panels, rails, and gates. A standard residential fence costs $2,000 to $8,000 to replace depending on material and length, which typically falls well within the Coverage B limit unless the fence claim occurs alongside damage to other structures in the same event.

Retaining walls that serve a structural purpose, such as preventing soil erosion or supporting grade changes on your property, are covered under Coverage B. Decorative garden walls and landscape features may or may not qualify depending on the insurer and whether they are considered permanent structures.

When to Increase Your Coverage B Limit

Calculate the total replacement cost of every other structure on your property. Include the detached garage, all sheds and outbuildings, the total fence perimeter, any pools or pool enclosures, gazebos, pergolas, retaining walls, and other permanent fixtures. If the total exceeds 10% of your dwelling coverage, contact your insurer about increasing the Coverage B limit.

Common situations where the standard 10% limit is insufficient include properties with large detached garages (especially those with finished interiors), homes with extensive fencing (privacy fencing on large lots), properties with in-ground pools and pool houses, rural properties with barns or large workshops, and homes with multiple outbuildings.