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? After all, you probably use your garage or shed to store bikes, lawnmowers, furniture and maybe even gym equipment. 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 most home insurance 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 shed and garage coverage to your policy. 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. Some provide more coverage than others, and coverage limits may vary, which is why it’s important to educate yourself about the different policies available. What does homeowners insurance cover? It’s time to learn more about the three categories of homeowners insurance:
Basic
While it’s the most affordable type of coverage, basic home insurance policies have lower coverage limits than their counterparts. However, they will cover damage to your home in the event of fire, lightning, wind storms and hail. The events covered vary but are restricted to the perils listed on your policy.
Broad
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. 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. Don’t forget that you get the perk of home insurance tax deductibles each year. If you have questions about your insurance policy, your broker can help.
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 coverage includes. Sometimes, there are exclusions that insurance providers don’t mention. When this happens, you may require additional coverage to protect your belongings. 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 the items if you have to make an insurance claim. Remember to keep them somewhere secure like a safe or a lockbox.
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 limits.
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.
Talk to a BrokerLink expert to ensure you have the home insurance coverage you need!
If you need insurance for your home, shed, or garage, a BrokerLink insurance advisor can help. We will take the time to get to know you, understand the coverage that suits your needs, and explain concepts such as third-party liability insuranceclearly and concisely. We are your go-to broker for home insurance. It’s easy to get in touch! Here's how you can do it:
Get a home insurance quote [phone]
Insurance for sheds and garages FAQs
Is damage to my garage door covered by insurance even if I cause it?
If you accidentally damage your property, it could still be covered by insurance—that’s what insurance is for! However, every policy is different. To ensure you have the exact coverage you need (including your garage door), reach out to your insurance broker.
How do I calculate the value of my garage and shed contents?
To calculate the value of what’s in your garage and shed, make a list of all items inside these structures. Then, you can find the approximate value of these items online and add up the costs.
What can I do if the items in my garage have caused major damage to my car?
If your car is damaged, your insurance policy will pay for the repair costs. If you keep business vehicles in your garage, consider learning about fleet insurance requirements.
If you have any questions, contact one of our local branches.
