Other structures coverage
Other structures coverage, also called Coverage B, helps pay to repair or replace covered detached structures on your residence premises, such as a detached garage, shed, fence or qualifying pool. A standard HO-3 form limits it to 10% of the dwelling limit, and the policy's exclusions, deductible, loss settlement and endorsements decide the actual payout.
Also called: other structures, other structure, coverage b
Coverage B is a separate pot of money in your homeowners insurance for the buildings and fixtures on your lot that stand apart from the house. It applies to a structure set apart from the dwelling by clear space, or connected only by a fence, utility line or similar connection, according to the public sample ISO HO-3 form (opens in a new tab). Using it does not reduce the limit on the house itself. The questions that decide a claim are whether the structure is attached or detached, what your Coverage B limit is, whether the cause of loss is covered and whether the structure is used for business or rental.
How the 10% limit plays out on a garage fire
Under the standard HO-3 form, Coverage B is not more than 10% of the dwelling limit (Coverage A). Take an illustrative policy with a $400,000 dwelling limit, which gives a $40,000 Coverage B limit, and an illustrative $2,000 deductible. A fire destroys a detached garage that costs $35,000 to rebuild.
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| Item | Amount |
|---|---|
| Coverage B limit (10% of $400,000) | $40,000 |
| Covered rebuilding cost | $35,000 |
| Deductible you pay | $2,000 |
| Insurer pays ($35,000 minus $2,000) | $33,000 |
| Coverage B limit left | $5,000 |
If the same garage cost $50,000 to rebuild, the $40,000 limit would cap the claim. After the $2,000 deductible, the insurer would pay no more than $38,000 and you would cover the remaining $12,000, subject to the policy's loss-settlement terms. The 10% figure comes from the HO-3 form; the dollar amounts are illustrations, not averages or quotes.
Limit options and what each changes
Not every policy uses 10%. The main variations change how much money is available after a loss:
- The standard 10%. A $300,000 dwelling limit produces a $30,000 Coverage B limit under that structure, and the California Department of Insurance (opens in a new tab) describes 10% as the normal limit.
- A higher limit. More Coverage B can be bought for an additional premium, according to the same California guide. Insurer filings can use other percentages, including 20% of the dwelling limit in California's company deviation listings (opens in a new tab).
- A lower limit. Some programs offer less, which reduces the premium and the money available at claim time.
- Deductible. Your Section I property deductible normally applies to Coverage B losses too. A higher deductible generally lowers the premium and raises your share of each claim.
- Replacement cost or actual cash value. Actual cash value subtracts depreciation. Replacement cost is still subject to the limit, the deductible and any repair-or-replace conditions.
- Ordinance or law coverage. The sample HO-3 adds up to 10% of the dwelling limit for certain increased costs caused by building codes, separate from the basic Coverage B limit.
If you add a garage, pool, fence or accessory dwelling, the Coverage B limit does not rise on its own, so a new structure can leave you underinsured until you update the policy.
Where Coverage B shows up
You'll meet the term mostly on homeowners forms such as HO-2, HO-3 and HO-5, where it sits in Section I as Coverage B. Dwelling fire and landlord policies may call it "other structures," "additional structures" or "appurtenant structures," with different limits and exclusions. A condo unit-owner policy (HO-6) may cover separately owned structures, while the association's master policy may insure common ones, so the condo documents decide. A renters policy (HO-4) generally doesn't insure the landlord's buildings at all.
On paper, look at the quote, binder, declarations page and renewal packet. New York's sample declarations page (opens in a new tab) labels it "OTHER STRUCTURE" and shows $34,500 against a $345,000 dwelling limit. A claim letter may say "Coverage B" when it assigns a loss to that limit. Belongings inside a shed or garage, such as tools and furniture, generally fall under personal property coverage instead, and an attached garage is generally part of the dwelling coverage.
How Connecticut changes the Coverage B limit
Connecticut does not fix one Coverage B percentage for every policy. Homeowner insurer standards from the Connecticut Insurance Department (opens in a new tab) allow Coverage B options down to 1% of the dwelling limit, as long as the declarations page clearly shows the amount of the discount; 10% was the prior minimum standard. If you see a Coverage B discount on a Connecticut declarations page, that is the signal your limit sits below 10%.
Connecticut also treats pools in a specific way. Covered damage to an in-ground pool is typically assigned to Coverage A or B, and to an above-ground pool to Coverage B or C, while wear, tear and lack of maintenance are not covered, according to the Connecticut Insurance Department's pool safety notice (opens in a new tab). Our Connecticut homeowners insurance guide covers the rest of a typical policy.
Questions to ask an agent or insurer
- What is my Coverage B limit in dollars, and is it a percentage of the dwelling limit? The limit may be 10%, 1%, 20% or another filed amount.
- Which structures on my property fall under Coverage A, B or C, or another policy? Attached structures, detached structures, pools, fences, belongings and condo components can sit under different coverages.
- Is each structure insured for replacement cost or actual cash value, and what deductible applies? Depreciation and the deductible both reduce the payment.
- Are any structures excluded because they are rented, used for business, used as an accessory dwelling or used to store business property? The HO-3 form excludes those uses for Coverage B, with stated exceptions.
- Is flood, earthquake, wear and tear, maintenance damage or code-required rebuilding covered for this structure? Flood and earthquake are commonly excluded, and ordinance or law coverage may be separate or limited.
Frequently asked questions
These answers cover the structures and situations people ask about most.
Does Coverage B pay for flood damage to a shed or garage?
Not under a standard homeowners policy. Homeowners and renters insurance do not cover flood damage, and flood insurance is a separate policy, according to the Connecticut Insurance Department (opens in a new tab). A separate flood or earthquake contract may also limit detached structures, so ask how it treats them.
Does my renters insurance cover the landlord's garage?
Generally no. A renters policy covers your belongings and liability, not the landlord's building or detached structures, according to the NAIC (opens in a new tab).
Is a detached home office or rental unit covered?
Possibly not under Coverage B. The HO-3 form excludes structures used for business, structures used to store business property and structures rented to people who aren't tenants of the dwelling, except a private garage. An endorsement or a separate policy may be needed for that use.