If you recently bought a home, you likely already have home insurance. The majority of home insurance policies cover the contents of your home. However, you might wonder about the structures on your property that aren’t attached to your home.
What if you have a detached garage or shed? Are the contents covered? If you are a victim of theft or if these items get damaged, replacing them isn’t cheap. Read on to learn more about insurance for sheds and garages.
Home insurance coverage
The good news is that when buying home insurance, most policies can extend to other structures on your property, such as sheds and garages (or both). In other words, if the contents of these structures are damaged or stolen, your insurance provider will help cover the costs.
It’s important to note that individual policies vary. You have to speak with your insurance broker to determine if homeowners insurance covers other structures on your property. If it doesn’t, you might have to add a separate policy to ensure that you have your garage and shed covered. You should never underestimate the importance of risk management.
Types of home insurance policies
There are several types of home insurance policies available, and not all are equal. So, what does homeowners insurance cover?
Basic
While it’s the most affordable type of coverage, basic home insurance policies have minimum coverage limits compared to their counterparts. However, they will cover damage to your home in the event of fire, lightning, wind damage, and hail. The events covered vary but are restricted to the perils listed on your policy.
Broad (coverage B)
As a step up from basic home insurance, broad home insurance offers specified risk protection. Besides protection from the elements, it provides compensation for theft and vandalism as well as unforeseen circumstances, such as burst pipes that cause water damage on walls and ceilings throughout your property. Your insurance broker can provide further clarification.
Comprehensive
If you’re extra cautious, comprehensive coverage might be the best option for you. It will protect your home against a variety of perils, but certain exclusions do apply. Many homeowners prefer it because it provides them with peace of mind and protects the huge investment that comes with buying a home.
Homeowners insurance covers the items in your main dwelling, often including contents insurance. If you have questions about your insurance policy or need further clarification about the difference between a comprehensive vs. broad home insurance policy, your broker can help. Other coverage options you may want to consider include:
What doesn't my home insurance policy cover?
While your home policy offers protection from numerous perils, some events are excluded. Damage caused by the following is typically excluded from home insurance:
- Water damage that results from plumbing issues is caused by a lack of maintenance, wear and tear, and homeowner neglect.
- Pest control following an animal or insect infestation on your property.
- It will also not cover mould unless the mould develops as a result of a covered peril.
- Home insurance will not cover appliances unless the damage or loss occurs as the result of a peril listed in your policy.
- Roof damage due to old age, lack of maintenance, or neglect.
To prevent home insurance winter claims, make sure to perform preventative maintenance on your home throughout the year.
Is your roof winter-proof? Want to learn more about preventing spring flooding? BrokerLink has numerous guides that can help you prevent a claim on your insurance history!
Detached structures insurance
To protect every part of your property, you should purchase detached structures insurance for sheds and garages. It covers structures that are separated from your dwelling by a clear space. The dwelling is the place where you actually live. Examples of detached structures include:
- Detached garage
- Shed
- Gazebo
It’s important to check what your insurance includes by reading the fine details of each policy. Sometimes, there are exclusions that insurance providers don’t mention. When this happens, you may require additional coverage to protect your belongings like power tools, garden tools, garden furniture, and other items stored in detached buildings. Ask your insurance broker about outbuilding insurance to understand what structures are covered by your policy.
Let your insurance provider know if you work from your garage
There are different types of insurance coverage available to suit your personal and business needs. If you’re an entrepreneur, consider purchasing business insurance in Ontario. It’s important to let your insurance broker know if you are working from your garage or another detached structure. That’s because doing any activities in your garage is considered risky. Examples include:
- Welding
- Woodworking
- Construction
Partaking in such activities increases your risk levels, which can increase your insurance premiums. However, by letting your broker know, you won’t have to worry about paying for damages, even if you have to pay a little each month. In some cases, you may require home business insurance.
Protecting items in your garage
Preparing a home inventory checklist can help you keep track of your belongings — this is especially important if you keep expensive tools and equipment in your shed or garage. You can include items in your garage, shed or external structure on this list. Besides compiling a list of items, you should take pictures of the ones in your home, garage or any other building on your property. It will help you prove ownership of items and let you document any items you missed on your list.
Making the most of your outbuilding insurance
If you have a detached structure you want to insure, you have to let your insurance company know. From there, they can help you protect it with outbuilding insurance. These insurance costs are worth it because they help safeguard items in a detached garage or another structure. Here are some tips to make the most of your policy:
Keep your receipts
If you are storing valuable items inside storage buildings like pool houses, you should keep your receipts. It will help you to prove the value of your personal property if you have to make an insurance claim. Remember to keep them somewhere secure, like a safe or a lockbox, and implement other security measures.
Increase coverage limits if necessary
Any structures not directly attached to your main dwelling are considered outbuildings. These aren’t limited to sheds and garages and can include a guest house. That’s why you should ask your broker about insuring individual items if they exceed your insurance coverage limit.
Insure additional vehicles
You probably already have car insurance. However, if you have classic or vintage cars stored inside your garage, you likely aren’t driving them. If this is the case, you should ask your broker about adding to your policy.
What is the difference between market value and replacement cost?
Unsure what the difference is between market value vs replacement cost? The replacement cost is the amount that the insurance company would pay to rebuild or replace a building from the ground up in the event of a total loss. In contrast, market value considers numerous factors like the location, current market value of the structures and more. In the event your structures are damaged, market value typically has a higher payout than the replacement value.
Contact an insurance broker from BrokerLink
If you need home coverage for your property, shed, or garage, BrokerLink insurance experts can help you find the right coverage. We will take the time to get to know you, understand the coverage that suits your needs, and explain concepts such as third-party garage liability insurance clearly and concisely. Here's how:
- Get an online quote
- Give us a call
- Visit one of our local branches
BrokerLink is also a go-to resource hub for all insurance topics! Whether you want to learn if home insurance covers renovations or how to invalidate home insurance, take a look through our guides for more information!
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