Most homeowners focus on insuring their main house and forget about everything else on their property. That detached garage, storage shed, or workshop might represent thousands of dollars in value, but many people don’t realize how their insurance handles these structures. At Sound Choice Insurance Agency Inc in Lynnwood, WA, we regularly help homeowners understand what’s actually covered.

Standard Coverage for Detached Structures

The good news is that most homeowners’ insurance policies automatically include coverage for detached structures. This typically covers garages, sheds, fences, gazebos, and even dog houses. The standard coverage amount is usually 10% of your home’s coverage limit. For example, if your house is insured for $300,000, you’d have $30,000 in detached structure coverage.

However, this coverage comes with important limitations. The structure must be primarily used for residential purposes, not business. If you’re running a woodworking business out of your detached garage, that could complicate coverage. Additionally, structures used to house business property might not be covered under your standard policy.

When Additional Coverage Is Necessary

Sometimes, the standard 10% coverage isn’t enough. If you have an expensive detached garage with custom features or multiple outbuildings, you may need to increase your coverage limits. High-end pool houses, workshops with costly equipment, or large barns can easily exceed standard limits.

It’s also important to note that the contents inside detached structures are treated differently. Tools in the garage or lawn equipment in the shed fall under your personal property coverage, which has its own limits.

Evaluate Your Coverage Needs

Take a walk around your property and calculate the cost to rebuild your detached structures. Don’t forget to account for foundations, electrical work, and custom features.

Sound Choice Insurance Agency Inc. in Lynnwood, WA, can help you assess whether your current coverage matches your replacement costs. Contact us today to ensure your property is fully protected.