Do I Need Other Structures Coverage for My Home?

Other structures coverage is a part of a standard homeowners insurance policy that covers sudden damage to structures on your property that are not directly attached to your home, such as a detached garage, shed or fence. This coverage is mandatory while you are paying off your mortgage, and it is a wise investment otherwise since it can provide reimbursement for damage caused by covered perils, such as fire, windstorms and vandalism.

Continue reading to learn more about which structures and perils are — and aren’t — covered by other structures insurance.

On This Page

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  What Is Other Structures Coverage in Home Insurance?

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  How Does Other Structures Coverage Work?

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  Is Other Structures Coverage Required?

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  How Much Does Other Structures Coverage Cost?

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  FAQs

What Is Other Structures Coverage in Home Insurance?

Other structures coverage — also known as Coverage B or additional structures coverage — insures every freestanding structure on your property besides your house. It is one of six main coverage types included in a standard home insurance policy, along with dwelling, personal property, loss of use, personal liability and medical payments coverage.

Depending on your insurance company, you may have the option to insure other structures on your property at their replacement cost value (RCV) or actual cash value (ACV). With RCV coverage, your insurer will cover the cost of replacing a standalone structure after it is destroyed by a covered peril. Conversely, ACV coverage is a cheaper option that allows your insurer to lower your payout based on depreciation factors, like age or wear and tear.

What Are Other Structures in Home Insurance?

Examples of structures that may be insured by your other structures coverage include the following:

How Does Other Structures Coverage Work?

Other structures insurance generally covers the same perils as dwelling insurance, so a standard homeowners policy should protect your sheds and fences on an open peril basis.^[1] This means all sources of damage are covered except for those specifically listed in the policy as exclusions. Here are examples of major perils your home insurance policy should cover:

However, standard home insurance may provide limited coverage for a structure that serves a commercial purpose, like a shed you use to store tools for your landscaping business or an outbuilding you use as an office for your remote job. In this scenario, you will need to purchase home-based business insurance to be fully covered. Your other structures insurance may also exclude coverage for certain perils, such as these:

Other structures insurance claims generally require you to make an out-of-pocket contribution known as a deductible, which your insurance provider will automatically subtract from your insurance settlement.^[2] For example, if you have a $1,000 deductible and it will cost $3,000 to replace your shed after a tree falls through its roof, you may qualify for a $2,000 insurance payout.

Keep in mind that any items stored inside of your shed would be covered by your personal property insurance — not your other structures coverage.

Is Other Structures Coverage Required?

Other structures coverage is automatically included in a standard homeowners insurance policy and cannot be purchased separately, so there is no requirement to buy other structures coverage beyond what exists for home insurance as a whole.^[3] In general, you are only required to have home insurance if it is a condition of your mortgage loan agreement.

There is no law requiring homeowners to buy insurance in any state, so you are not obligated to maintain a home insurance policy with Coverage B if you have paid off your house. Nevertheless, homeowners insurance is a wise purchase to ensure you won’t have to bear the full financial burden if an unexpected accident damages your property.

How Much Does Other Structures Coverage Cost?

As of April 2025, it costs an average of $2,267 per year to purchase a homeowners insurance policy with $300,000 worth of dwelling coverage — since your other structures coverage limit is generally around 10% of your dwelling coverage limit, this premium should enable you to secure about $30,000 worth of other structures coverage on average.^[4][5]

Of course, your homeowners insurance rates can fluctuate based on factors like your location, claims history and — in many states — credit score. They may also depend on the characteristics of your property, such as its age and condition, and your policy details, such as the deductible you select.

Keep in mind that you may be able to raise your other structures insurance coverage limit above the 10% threshold by paying a higher premium. This may be necessary if you have highly valuable outbuildings you want to be able to replace after a covered loss, like a luxury pool house or multiple stables for housing farm animals.