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Your homeowners policy is divided into sections. Coverage A pays for the house itself. Coverage B, usually labeled other structures, pays for things on your property that are not attached to the house. Detached garages, fences, sheds, gazebos, and detached workshops fall here. Most policies set the other structures limit as a percentage of your dwelling limit automatically, and many homeowners never check whether that default amount matches what they actually own.
How the limit is set by default
A common default sets other structures coverage at ten percent of the dwelling coverage, though the percentage varies by insurer and policy form. On a large dwelling limit, that default can be generous. On a modest home with an expensive detached garage or a long fence line, it can fall short. The limit is a shared pool for all other structures together. One storm that damages your fence, your shed, and your garage draws on the same pool, so think about the combined replacement cost rather than each item alone.
You can usually raise the other structures limit for an added premium if your property needs more. The increase is priced in proportion to the extra coverage, and it is one of the cheaper adjustments on a policy because these structures hold less value than the house. Start with a realistic inventory. Our worksheet on how much dwelling coverage you need will help you think about rebuilding costs in general, and the same cost per square foot logic applies to a detached garage.
What other structures coverage pays for
It pays for damage from the same covered events that apply to your house, such as fire, wind, hail, and falling trees, subject to your deductible. A tree that falls across your detached garage in a storm is a typical claim. A fence blown down by covered wind can qualify, though fences take a lot of weather wear and insurers look closely at condition and cause.
- Detached garages and carports that are not connected to the house
- Fences, including shared boundary fences, subject to ownership and local rules
- Storage sheds, workshops, and detached studios
- Gazebos, pergolas, and similar yard structures
- Driveways and walkways in some policy forms, though forms differ and wear is not covered
Business use changes the picture. A detached workshop used for a business, or a detached unit rented to tenants, may be excluded or limited under a personal homeowners policy. If a structure earns you income, tell your insurer how it is used. The fix is usually an endorsement or a different policy, and it costs far less to arrange before a claim than to argue about after one.
Claims and valuation details that matter
How the structure is valued at claim time depends on your policy. Replacement cost terms pay to repair or rebuild with similar materials, while actual cash value terms subtract depreciation. Fences and sheds are often settled on an actual cash value basis under standard forms, which surprises owners who priced a full replacement. Read the settlement terms for other structures in your policy, and check whether your deductible applies per claim. Our explainer on how home insurance deductibles work covers the basics, and our guide to filing a homeowners claim step by step shows how to document damage when several structures are hit at once.
Walk your property once a year with this coverage in mind. Photograph each structure, note additions such as a new shed or an extended fence, and tell your insurer when the inventory changes. A five minute update after you build something protects you from discovering an outdated limit after a storm.
When to raise your other structures limit
Raise the limit when the combined replacement cost of your detached structures passes the default amount. A large detached garage with a finished room above it, an extensive fence on a big lot, or a workshop with real construction value can each consume much of a default limit on their own. Get a rough builder’s estimate for the largest structure and add reasonable figures for the rest. If the total sits close to your limit, an increase is cheap insurance against a storm that damages several structures in one night.
Also revisit the limit after projects. Homeowners remember to report a kitchen remodel and forget the new shed, the extended patio cover, or the rebuilt fence from the same year. Insurers pay based on the limit you bought, and undocumented structures still count against that shared pool. A short annual review of everything standing on your lot, with photos, keeps Coverage B aligned with what you own.
Related reading: what homeowners insurance covers and our national guide to homeowners insurance costs in 2026, plus homeowners insurance exclusions and what a policy does not cover.
