Homeowners insurance protects the structure of your home and your belongings from perils that are covered by your policy. It also includes coverage for detached structures on your property, like a shed, gazebo, or guest house.
Sheds are covered by the other structures coverage component in your home insurance policy. Your policy also covers personal belongings that are stored in the shed as well.
When does homeowners insurance cover my shed?
Homeowners insurance will cover your shed, as well as your belongings stored inside of it, from the same types of damage that your main residence is protected against, including fire, burglary, vandalism, and weather-related damage.
Standard home insurance is made up of different components of coverage, and each component will have a limit of liability, which is the maximum dollar amount an insurance company will pay out in the event of a covered loss.
Other structures coverage
Sheds fall under the other structures coverage portion of your homeowners insurance policy. Other structures coverage protects structures that are not attached to your main house, including sheds, guest houses, and detached garages.
In a standard home policy, other structures coverage has a coverage limit of 10% of your dwelling coverage limit. That means if your dwelling limit is $300,000, the most your insurer will reimburse you for damage to your shed is $30,000. If you don’t feel like that’s enough coverage, you can add more for an additional premium.
Personal property coverage
Your policy also covers personal belongings inside your shed if they are stolen or damaged by a covered event. That means if your lawn mower is damaged in a fire, your home insurance can help pay to repair or replace it, up to your policy’s coverage limit. Personal property coverage typically has a coverage limit of 50% of your dwelling coverage limit, but insurance companies may allow you to increase that limit to 70%.
Typically you’d be paid out the actual cash value of your damaged belongings, meaning depreciation would be factored into your reimbursement. You can upgrade your policy to replacement cost for an additional premium.
Personal liability coverage
Homeowners insurance contains personal liability coverage to protect you in the event you’re found responsible for accidental injury or property damage. If a guest trips and falls in your shed and badly injures themselves, for example, liability coverage could help pay for their medical expenses or legal fees if they decide to file a lawsuit.
When does homeowners insurance not cover my shed?
Homeowners insurance does protect your shed against many types of damage, however there will be exclusions listed on your policy for things home insurance will not cover, including:
Earthquake or earth movement
Wear and tear
Mold and wood rot