(800) 253-1482TX Home Insurance – What is Other Structures Coverage?
Summary: Home insurance covers the other structures on your property, such as detached garages and sheds. Coverage B is an important protection for all Texas homeowners, however, some policies for condos/townhomes may not require it. Overall, other structures coverage is an affordable way to gain a stronger form of protection for your property. Estimated Read Time: 4 mins
Table of Contents:
- What is Other Structures Coverage?
- Do I Need Other Structures Coverage?
- What Does Other Structures Insurance Not Cover?
- Can I Remove Other Structures Coverage?
- How To Find Other Structures Coverage in Texas
Having a detached structure from your home is a common occurrence for many Texans. Even if you have a garage connected to your home, there are sheds, detached offices, “she-sheds,” and even fencing that are additional structures in need of protection. Below, we’re breaking down how other structures coverage (Coverage B) helps protect the features of your property not connected to your home.
What is Other Structures Coverage?
Other Structures Coverage (Coverage B) is the portion of your home insurance policy that covers the cost of rebuilding or repairing structures on your property other than your home if they’re damaged because of a covered peril such as fire, wind, or hail. This includes detached garages, sheds, and other detached buildings on your property – even fences – that may become damaged by a named peril.
Typically, a standard home insurance policy will provide 10% of the total dwelling coverage as protection for additional structures. For example, if you have $100,000 worth of coverage for the structure of your home, your policy would include $10,000 of coverage for other structures.
If you have more than one detached building on your property or an updated garage, you may need additional coverage above and beyond the standard 10%. Talk to a home insurance agent about scheduling an endorsement, which could raise your policy limits for your Other Structures protection.
Do I Need Other Structures Coverage?
There are no laws in Texas requiring other structures coverage, but you are most likely going to be required by your lender. Mortgage companies usually require Coverage B because they require homeowners insurance. A standard policy is going to have various coverages including protection for other structures.
However, if you have a condo or a townhome, you may not need standard home insurance. In this case, forgoing Coverage B can be acceptable and will save you money on premiums.
Finally, there are Texans who either purchase their home without a mortgage or have paid off their mortgage altogether. It’s still recommended to maintain Coverage B other structures protection to avoid potential major financial losses.
What Does Other Structures Insurance Not Cover?
Most homeowners policies exclude coverage for common perils. These are legitimate risks in Texas that could cause damage to your garage, shed, and home but they require additional protection. Coverage B other structures exclusions include the following:
- Flooding, whether due to heavy rain or overflowing rivers, is not covered by a standard homeowners policy. However, you can enroll in Texas flood insurance.
- Damages from earthquakes, sinkholes, landslides, or mudslides are also exclusions. Additional endorsements or riders are available and are especially important for homeowners in West Texas.
- Other structures used for business purposes, like equipment storage or shops, are also typically not covered. You will need to enroll in business insurance to protect against potential loss.
- Losses for routine home maintenance issues, such as aging fences or worn-out shingles, including infestations, are not covered.
Can I Remove Other Structures Coverage?
It’s unlikely that you can remove other structures coverage in Texas. This is due to a few reasons:
- Mortgage companies will mandate Coverage B.
- Even if you own your home, virtually every insurance carrier in the Lone Star State will require Coverage B when you enroll in a home insurance policy.
- Many homeowners who do not “need” other structures coverage, such as condo owners and residents of townhomes, aren’t going to have an HO-3 policy. Therefore, Coverage B will not be a part of their home insurance policy anyway.
Still, if you are looking to save on premium, it’s understandable to look at reducing coverage. Before doing so, homeowners need to conduct due diligence about what can happen when removing Coverage B. Below, we’re breaking down the pros and cons of other structure's coverage:
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Pros: |
Cons: |
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Saving money on premiums |
The savings in premiums are minimal |
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Simplifying your coverage |
Dropping Coverage B exposes you to potential losses that are quite costly |
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|
Removing coverage can create complications in getting coverage later on, selling your home, or in the midst of legal issues |
Remember, while you should enroll in personalized coverage that makes sense for you, maintaining Coverage B is recommended by experts. The positive aspects outweigh the bad at a comparatively minimal cost.
How To Find Other Structures Coverage in Texas
If you are a homeowner, you’re going to need protection. Home insurance policies are available to help Texans mitigate risk. Coverage B comes as a part of standard home insurance policies. Freedom Insurance Group works with many top-rated carriers which allows our team to:
- Shop and compare home insurance policies to find the best coverage for your needs.
- Compare bundles and discounts to maximize savings.
- Guide you through the process and provide trusted carriers with quality insurance products.
To learn more about other structures coverage and how it protects Texans, contact us today or get a home insurance quote and see how we can help you save with just a few clicks.
