In today’s world, garages are for a lot more than parking cars. People across the country have turned their garages into gyms, bars, apartments, workshops, and more. The value of those garages can change completely with these upgrades. And if your garage is “detached” from your home, the limits of your coverage may not be we you need.
Buildings that are not attached directly to the primary structure (home or “dwelling”) on your property are typically covered on homeowners insurance policies. However, many policies cover detached structures with only a percentage of the value of your home. As an example, your home may be covered for $500,000, but your detached garage may only be covered for 10% of that value – or $50,000. That may seem like a significant amount, but consider a total loss claim scenario for your detached garage. If you’ve upgraded that structure with flooring, finishing, or maybe even a sink, wet bar, or full bathroom – $50,000 isn’t going to go very far with today’s cost of building materials and labor.
Additional coverage for “Other Structures” (also known as Coverage B) is typically available to add to homeowners policies. If not, sometimes standalone coverage called Detached Structure Insurance can be purchased. You should also keep in mind that if you store property for “business use” in your Other Structure (e.g. tools, inventory, shipping materials, etc.), it likely would not be covered on your personal policies if you had a loss.
Detached garages and other structures often have more coverage needs than their owners have considered. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss your property and provide you info on the coverage you need.