Can I Remove Other Structures Coverage from My Policy?
Sometimes, if your insurer allows it, but most policies bundle it with dwelling coverage and won't let you drop it entirely.
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Whether you can drop it before closing
Other structures coverage pays to rebuild things like a detached garage, shed, fence or deck if they're damaged by something your policy covers. Some insurers let you lower that coverage or remove it if you have no detached structures on the property, but others set it automatically as a percentage of your dwelling coverage and won't let you take it to zero. Since you're buying a house, check the property first. If there's a shed or fence included in the sale, removing this coverage means paying to rebuild it yourself after a covered loss. Before closing, ask whoever is writing your policy whether this coverage is optional on the plan they're quoting, and what structures the property actually has, since that's what decides whether dropping it makes sense.
Compare before you lock in a number
One insurer may let you drop or lower this coverage if the property has no detached structures, another may bundle it in no matter what. Comparing quotes shows what each one actually charges for it.
What happens if a detached structure is damaged after closing
If a covered event damages a detached garage, shed, fence or deck, other structures coverage pays to repair or rebuild it, up to the limit on your declarations page. That limit is usually set as a percentage of your dwelling coverage, decided automatically when the policy is written. It covers all the detached structures on the property combined, not a separate limit for each one. If there's a garage and a fence and both are damaged in the same event, both draw from that same pool.
The deductible on your policy applies here too. Most policies use one deductible for the whole policy, so a claim for a damaged fence is reduced by the same deductible that would apply to damage to the house itself. If repairing the fence costs less than your deductible, filing a claim doesn't make sense. You would pay the full cost yourself either way. This is worth knowing before closing, since a low-value structure like an old shed might not need a high limit even if the option is there.
Detached structures added after closing, like a new shed or a pool house, aren't automatically covered at whatever limit was set on day one. If what you own changes, the limit may need to change with it. That's something to revisit at renewal rather than something to fix now, but the coverage in place at closing reflects the property as it exists then, not what gets added later.
If the property has a structure you plan to tear down or that's already in poor condition, mention that to whoever is writing the policy. Some insurers price this coverage based on what currently exists, and a structure that won't be there in six months may not be worth insuring now. It's a smaller decision than dwelling coverage or your deductible, but it's one more number on the quote worth understanding before you sign anything.
How insurers decide the limit and what raises or lowers it
Since other structures coverage is usually set as a percentage of dwelling coverage, the number on the quote isn't something an agent picks by eye. It moves with the dwelling number. If the dwelling coverage goes up because the rebuild cost estimate on the house changes, the other structures limit tied to it goes up too, even if nothing about the shed or fence changed at all. Worth checking that the dwelling figure itself is accurate, since everything downstream depends on it.
Some insurers offer a flat percentage with no adjustment, others let it be raised above the default if the property has something expensive to replace, like a detached garage big enough to park in or a guest house. If the property has a structure like that, ask whether the default percentage is enough to actually rebuild it, not just repair it. Underinsuring a detached garage means paying the difference out of pocket if it's a total loss, the same problem as underinsuring the house, just smaller in scale.
A few things typically fall outside this coverage no matter how the limit is set. Structures used for business, like a workshop that's actually a storefront, often need separate coverage or an endorsement. Structures rented out to someone who isn't part of the household can also fall outside the standard terms. If the property has anything like this, that's worth a direct question before closing rather than an assumption that it's automatically included because it's technically on the land.
None of this requires a decision before closing beyond confirming the number reflects what's actually there. The percentage can usually be adjusted later at renewal if the property changes or if a structure turns out to need more coverage than the default gave it. What matters now is that the limit on the declarations page was set based on accurate information about the property, not a generic assumption made before anyone looked at what's actually being insured.
Before you sign
Walk the property list against the declarations page. If a shed, fence, detached garage or anything else is included in the sale, confirm it's covered at a limit that could actually rebuild it.
