Is My Garage, Shed or Any Detached Structure Covered On My Home Insurance Policy?

You’ve just finalized your home insurance policy and realized you never told your insurance broker about your garage, gazebo and garden shed. What happens if they are damaged? Are you covered, and for how much? Does your insurance policy respond, and what if there are tools or contents in my detached structure, are they covered?

Coverage for Detached Structures

The good news is most home insurance policies automatically provide coverage for detached structures on your property. This can include any structure not attached to your main dwelling. Anything from sheds, gazebos, pavilions, boat houses, garages or fences. The one thing to be cognisant of is how much coverage you have for these detached private structures. On most home insurance policies you are automatically given 10% of your home’s insured value. As an example, if your dwelling limit (home’s insured value) is $600,000 you would have $60,000 for detached private structures. In many cases that will be a sufficient amount and in some cases your home may not have any detached private structures so you may not require that coverage at all. But for many homes that limit may not be adequate and if it is not increased you may be on the hook if a loss occurs.

Can I Increase My Detached Structures Limit?

If you find that the limit you have on your policy for your detached private structure is not enough you will need to let your insurance company know. Your broker can increase the limit of coverage to appropriately reflect the value of the detached structures. Most insurance carriers charge a premium to do so, some carriers do not offer any additional protection and so your policy would need to be rewritten to find the appropriate coverage. And some carriers depending on the size and value of the detached private structure will require a separate policy to be taken out for the detached structure. Large garages, with living quarters above them, pavilions or boat houses with their own plumbing and heating, these are examples of detached structures that may require an additional policy.

My Home has Guaranteed Replacement Cost Does My Garage As Well?

In most instances if your garage, outbuildings or detached private structures exceed the automatic value provided they will not have guaranteed replacement cost. Every company treats this differently but in most cases you would need to disclose that you have a detached private structure that exceeds the base limit on the policy. Example your policy coverage is $60,000 for detached structures but your garage is actually $130,000 in value you would need to increase your limit. Some insurance carriers may require a separate building valuation be done, for instance if you have a detached garage with living quarters, or a pavilion, etc., a formal appraisal may be required. That value of the detached structure will then be added to the policy separately and charged the appropriate premium. In some cases it needs to be added to the policy as a secondary dwelling. This situation can be complex so it is always best to discuss any detached private structures with your broker. You do not want to be in a situation where damage occurs to your detached private structure and you do not have adequate insurance in place to cover it and your guaranteed replacement cost from the home will not always extend to your detached structures.

Are the Contents in My Shed or Garage Covered?

Your home insurance policy also automatically provides content insurance to cover your belongings from theft or damage (subject to your policy deductible). However, this may not always adequately cover the items you store in a shed or garage. If you have vehicles in your garage they will require their own auto insurance policy. Many people store vehicles during the winter in their garage, if that is the case you still need to ensure your vehicle has comprehensive coverage in place. Without comprehensive coverage if the vehicle is damaged or stolen while parked there would be no coverage. Antique or classic cars may also be stored in a garage, again you would need to take out a separate policy to cover that vehicle.

As far as other contents are concerned you have basic coverage for contents in your garage. However, some of these items have limits that you may need to increase. Items like bicycles, power tools, lawnmowers are all subject to limits on your policy. If you own high-end bicycles, the coverage on your policy may not be adequate and you would need to schedule them separately, or increase the limits on your policy to insure them to their full value. If you use any of your power tools or equipment for business use, you would need to cover them on a separate commercial insurance policy as they would not be covered under your home insurance policy. If the tools are just used for personal use you would have coverage, however if they are high-end or expensive tools you need to let your broker know in case the limits on your policy need to be increased.

How Do You Make Sure You’re Properly Covered?

The best way to ensure you are properly covered for your detached private structures and tools or contents is to contact an insurance broker. Keeping receipts, pictures and an inventory for your high end contents is always a good idea, that way if a loss occurs you know what was damaged and the total amount lost. If you have any bigger or valuable structures that are not attached to your primary dwelling it is a good idea to disclose them to your broker. Your broker can assist you with the square footage and building value if necessary and find a policy that will cover you if a claim is to occur. If you are looking for an updated home insurance quote, one of our brokers will be happy to assist you.