How Much Other Structure Coverage Do I Need?
Enough to rebuild your fence, shed or detached garage. Most policies default to 10% of dwelling coverage.
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What counts as a structure
A detached garage, a fence, a shed, a gazebo, even a paved driveway can count as other structures. Walk the property before closing and list what's on it. The default percentage assumes an average lot, not yours specifically.
How the default is set
The 10% figure is a percentage of your dwelling coverage, the amount it would cost to rebuild the house itself. If dwelling coverage is set correctly, the default often works. If dwelling coverage is wrong, other structures coverage is wrong by the same ratio.
When 10% falls short
A detached garage built for two cars, a barn, or a pool house can cost more to rebuild than 10% of dwelling coverage allows. Add up what each structure would cost to replace at today's building prices, not what you paid or what they're worth used.
Checking your own policy
The declarations page lists the other structures limit as a dollar figure, separate from dwelling coverage. Before closing, compare that number against what's actually standing on the lot so the lender's required coverage also matches what the house needs.
Different insurers set that default differently
The 10% figure isn't fixed. Some policies calculate it differently, and prices for the same coverage vary by insurer. Compare quotes before closing to find a policy that matches what's on the lot without overpaying.
Does the deductible change with other structures coverage
Other structures coverage doesn't usually carry its own deductible. It falls under the same deductible as your dwelling coverage. If a storm takes down your fence and damages your roof in the same event, you pay one deductible, not two. Check your declarations page to confirm this. A small number of policies split out a separate deductible for detached structures, and that changes the math on whether a claim is even worth filing.
How the payout works also depends on whether your policy pays replacement cost or actual cash value for other structures. Replacement cost pays what it takes to rebuild the shed or garage today. Actual cash value subtracts depreciation, so a ten-year-old detached garage might pay out far less than what a new one costs to build. Some policies apply replacement cost to the dwelling but actual cash value to other structures. That's worth knowing before you need to rely on it.
A detached structure used for business, like a workshop you rent out or a garage housing a side business, may not be covered the same way as one used for personal storage or parking. Insurers often limit or exclude coverage tied to commercial use, even on a structure sitting on a residential lot. If anything on the property gets used for more than personal use, mention it directly when getting quotes so the policy reflects it.
One more thing worth checking is whether a structure counts as attached or detached. A structure joined to the house by a breezeway or a covered walkway usually counts as part of the dwelling, not as another structure. That distinction matters because it shifts which coverage limit applies. An attached structure miscounted as detached, or the reverse, can leave a gap exactly where you expected coverage to be. The declarations page and the policy's definition section both spell out where that line falls.
What else affects other structures coverage
A fence that sits on the property line raises a question that doesn't come up with a garage or shed. If a shared fence is damaged, your policy usually only covers your share of it, and figuring out that share can be its own argument between neighbors. Some policies cover the full fence if it's primarily on your lot, others split it based on survey lines. The declarations page won't settle this, so it's worth asking directly how a boundary fence is handled before closing, not after a storm.
Structures that existed before you bought the house, like an old shed in poor repair or a detached garage with outdated wiring, can also complicate a claim. An insurer may cover what it costs to rebuild something equivalent, not necessarily upgrade it to current building code. If local code requires changes a prior structure didn't need, like updated electrical or a different foundation, that gap sometimes falls under a separate endorsement for code upgrades. Without it, you could be paying the difference between what the old structure cost to replace and what code now requires.
Detached structures added after the policy starts, like a shed bought the first summer in the house, don't automatically fall under coverage. Other structures coverage is based on what existed when the policy was written and priced. Adding a new structure mid-term usually means letting the insurer know so the limit gets adjusted, the same way finishing a basement would change dwelling coverage. Skipping that step doesn't void the whole policy, but it can mean a new structure isn't covered at the amount it would actually cost to replace.
Landscaping and built-in features sometimes get confused with other structures, though they're treated differently. Mature trees, built-in plantings, or a stone retaining wall may fall under a separate, usually much smaller sublimit meant for landscaping, not the same coverage that applies to a garage or shed. If the property has a retaining wall holding up part of the yard or driveway, it's worth checking which category it falls under, since a sublimit for landscaping can be a fraction of what the wall would actually cost to rebuild.
Before you sign anything
Walk the lot one more time, add up what every structure on it would cost to rebuild, and check that number against the other structures limit on the declarations page before closing.
