Colorado Homeowners Guide
Other structures coverage—typically Coverage B on Colorado homeowners forms—pays to repair or replace structures on the residence premises that are set apart from the dwelling by clear space: detached garages, sheds, barns, gazebos, and, depending on form language, fences and similar freestanding structures. It is usually a percentage of Coverage A (dwelling)—often about 10% by default—unless you raise it. In Colorado, hail, wind, wildfire ember exposure, and under-valued custom outbuildings make Coverage B more than a throwaway sublimit. Freedom Insurance Group is an independent agency licensed in Texas, Tennessee, Colorado, and Missouri.
Honest pricing note: Raising Coverage B is usually modest next to dwelling premium when the carrier allows it. Price the rebuild of what you actually own on the lot.
What Counts as an Other Structure
On ISO-style HO forms used widely in Colorado, Coverage B generally applies to structures on the residence premises that are separated from the dwelling by clear space—or connected only by a fence, utility line, or similar. Common examples:
- Detached garages and carports
- Tool sheds, storage buildings, and backyard studios
- Barns and small agricultural outbuildings on residential lots (eligibility varies)
- Gazebos, pergolas, and freestanding play structures (form-dependent)
- Fences, freestanding decks, and retaining walls when the form places them in B rather than as dwelling extensions—read the language
Attached garages and additions that are part of the house usually fall under Coverage A, not B. When in doubt, walk the property with photos and ask how the carrier classifies each building.
Coverage A — Dwelling
The residence structure and typically attached components. Size to rebuild cost—see dwelling coverage.
Coverage B — Other structures
Detached buildings and many freestanding structures, often a % of A unless increased.
Coverage C — Personal property
Contents inside the house or outbuilding—tools and gear may have sublimits; the building shell is still B.
Not flood / not earth movement
Standard HO forms still exclude flood and typically earthquake; outbuildings need the same specialty conversation as the house when those perils matter.
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How Coverage B Limits Are Usually Set
Carriers commonly set Other Structures at about 10% of Coverage A automatically. Examples of why that default fails in Colorado:
- $500,000 dwelling → ~$50,000 Coverage B — fine for a basic shed, thin for a detached garage that would cost $80,000–$150,000+ to rebuild today
- Mountain properties with equipment barns, generator sheds, and snow-gear buildings stacked on one percentage limit
- ADU-adjacent or workshop structures with electrical, insulation, and finished interiors that track house-level rebuild costs
Ask whether you can increase Coverage B as a stated dollar amount, whether a percentage increase endorsement exists, and whether any single-structure sublimit applies inside B. After a remodel of the garage apartment or a new metal barn, revisit the number the same season—not after the hail claim.
Default 10% vs. real outbuilding rebuild (illustrative)
Educational examples—not appraisals or quotes. Use local contractor pricing.
| Property sketch | ~Coverage A | Default ~10% B | Risk |
|---|---|---|---|
| Front Range ranch + small plastic shed | $450,000 | ~$45,000 | Usually adequate for the shed alone |
| Denver lot + two-car detached garage with workshop | $550,000 | ~$55,000 | Garage rebuild may exceed B after labor/materials |
| Acreage edge-of-town + barn + fence line | $600,000 | ~$60,000 | Barn + long fence can consume B quickly after wind/wildfire |
| Mountain home + equipment shed + generator building | $700,000 | ~$70,000 | Access/logistics inflate rebuild; raise B intentionally |
Inventory outbuildings the same way you inventory dwelling square footage.
Colorado Hail on Outbuildings
Hail does not skip the shed. Metal panels, asphalt shingles, and polycarbonate roofing on detached structures take the same supercell hits as the main roof—sometimes with less maintenance attention beforehand. After a Front Range hail event:
- Photograph damage to garage and shed roofs before temporary tarps hide evidence
- Confirm whether wind/hail deductibles (including percentage deductibles tied to Coverage A) also apply to Coverage B losses—carrier practices vary; read your deductible endorsements
- Ask how roof payment method (replacement cost vs. actual cash value / depreciation schedules) applies to outbuilding roof surfaces
- Do not assume a claim on the house automatically opens a fully documented claim on every outbuilding—list each structure
Wildfire and ember exposure also scrutinize wood-sided barns and brush clearance around detached buildings. Underwriting may ask about defensible space for the whole premises, not only the dwelling footprint.
Business Use, Rentals, and Exclusions
Homeowners Coverage B often limits or excludes structures used for business. A client-facing workshop, farm stand, short-term rental unit in a detached garage, or commercial storage building may need a different policy, endorsement, or landlord/dwelling form. Tell us how you use the building before we rely on a standard HO Coverage B limit.
Other frequent friction points:
- Structures that are not on the “residence premises” as defined
- Rented outbuildings or portions rented to others (form-specific)
- Vacant or poorly maintained sheds that create eligibility issues
- Solar arrays, gated entries, and specialty fences that may need scheduling or separate property coverages
Fences, Decks, and Gray Areas
Colorado wind and wildfire claims often involve fence lines. Whether fences fall under Coverage B, dwelling extensions, or a separate limit depends on the form. Freestanding decks and pergolas are similarly form-specific. Bring a simple site sketch when you quote so we do not discover the classification after a loss.
How to Size Other Structures Without Guesswork
- List every detached building with approximate size, construction, and roof type/age.
- Estimate rebuild cost—not purchase price of a kit shed from five years ago.
- Compare that total to the default percentage of Coverage A.
- Increase Coverage B when the math fails; ask about stated limits per structure if needed.
- Flag business, farming, or rental use before binding.
- Revisit after new builds, solar installs, or major fence replacement.
- Align hail deductible understanding across dwelling and other structures.
Related Colorado Pages
Pair with dwelling coverage, homeowners insurance, riders and endorsements, loss of use, and the Colorado insurance hub.
Colorado Other Structures FAQs
Is Coverage B required?
It is a standard part of most homeowners packages, usually included as a percentage of dwelling. You still need to check whether the amount is enough for your outbuildings.
Does Coverage B cover my detached garage?
Usually yes if it is set apart from the dwelling and used in a way the form allows. Business use or rental use can change the answer.
What percentage of dwelling is typical?
About 10% of Coverage A is a common default. Raise it when detached rebuild costs exceed that percentage.
Are fences included?
Often under Other Structures or a related limit—but form language controls. Confirm for your carrier.
Will hail damage to a shed use my wind/hail deductible?
Many policies apply the same deductible design to Coverage B losses; percentage wind/hail deductibles can be large. Read the deductible endorsements.
Does Coverage B pay for tools inside the shed?
The building is typically Coverage B; tools and contents are usually Coverage C (personal property), sometimes with special sublimits. Theft from outbuildings can be limited—ask.
What if I added a barn after I bought the policy?
Tell your agent. New structures can leave you underinsured on the old percentage limit and may affect underwriting.
Sources and further reading
- Colorado Division of Insurance — homeowners consumer resources.
- ISO HO-3 and successor form language — Coverage B Other Structures (review your actual policy edition).
- Insurance Information Institute — homeowners coverage parts basics.
- Freedom Insurance Group — ask an agent and Colorado insurance hub.
- Colorado Division of Insurance: What homeowners insurance does not cover. Accessed October 2026.
- Colorado Division of Insurance: Additional living expense handout. Accessed October 2026.
- National Flood Insurance Program: Buy a flood insurance policy. Accessed October 2026.
