Why You Need Expanded Other Structures Insurance for Homeowners Policies

So, suppose that a fire damages your home and the carport next to it. Dwelling insurance will cover the house and detached structure insurance will cover the carport. However, the limit to detached structures coverage usually is only a percentage of your dwelling coverage.  

For example, if you have $250,000 in dwelling insurance, your policy might limit detached structure coverage to $25,000. It will not pay up to $25,000 for each damaged structure, however. If your carport, shed and fence sustain damage, then you will receive up to $25,000 for all the damage costs combined. Depending on the value you need to repair or replace the structures, this limit might not prove adequate.  

Expanding Your Detached Structures Insurance 

There are ways to adjust your detached structure coverage to cover a higher loss value. One of the solutions is a policy endorsement that will provide extra other structures insurance.  

An endorsement is a change that you make to a policy that adjusts its terms and conditions. Many people use homeowners endorsements to increase their coverage to better address the value of their property. By buying an expanded other structures endorsement, you can increase the limits of your standard policy. That way, you will recoup more money in case you face a significant destructive loss on the property. For example, you might be able to buy an additional $25,000 in other structures coverage, which can increase your total limit to $50,000. That might be much more adequate for the value of all the detached structures on your policy. 

Speak to your insurance agent about how to increase your other structures insurance. They can guide you through the process of choosing the right endorsement to address the value in question.