The first thing to remember about home insurance is each policy is different. There are hundreds of home insurance providers in the US alone, and while many policies will be similar, your policy is likely to be different to your neighbor’s, your friend’s, and your work colleague’s.
For this reason, there is no broad cover-all answer to questions about home insurance, and what applies to someone else’s policy will not necessarily apply to yours. Each policy offers different cover, and each insurer will have its own way of doing things. You can learn more by visiting the HBF home insurance website today.
When it comes to answering questions like, is your backyard shed covered by home insurance, the first thing you will need to do is read your policy.
Read the Policy
Having a backyard shed can be great. You can use it to store garden equipment, tools, bikes, and anything else that doesn’t fit in the house. However, the things you keep in your shed can be expensive, and if anything were to happen to them, or to the shed itself, it could be costly to replace.
Which is where insurance comes in. If you want to find out what’s covered under your home insurance policy, read the policy itself. If you’ve read the policy and are still unsure, just contact your insurer and they should be able to tell you.
What is covered?
If your backyard shed is covered under your home insurance policy, its value will usually be determined by the value of the house. Auxiliary structures such as backyard sheds, gazebos and garages will usually be covered up to 10% of the value of the house itself.
So, if the house is worth $100,000, auxiliary structures will be covered for up to $10,000 worth of damages. However, if you keep expensive items in your backyard shed outwith this amount, you may need to upgrade your home and contents insurance to cover each of them items specifically.
When is it covered?
Again, each policy will cover for different eventualities, however, most home insurance covers damage by fire, lightning, wind, hail, explosions, vehicles and aircraft, smoke, theft and vandalism. Check your policy so you know exactly what you are covered for.
You may find that most policies don’t cover flood damage unless you request it specifically (You can learn more about this here). Some insurers don’t offer flood insurance, so if this is a deal breaker for you, check for that coverage before you sign. Flood insurance can make a policy substantially more expensive.
Tell your Insurer
If you’ve read your policy and are happy with the cover it offers your home – and backyard shed, if required – it’s still a good idea to advise your insurer that you want your shed to be covered. Some insurers insist that you let them know of any auxiliary buildings that need to be covered, or you may find that they’re not covered after all.