Do You Need a Separate Insurance Policy for Your Shed or Detached Garage?

garage insurance in Florida

Most people, when they incorporate additional structures onto the property of their homes, will have questions about whether or not those new structures will be covered under their current home owners’ policy. That is a normal question, however, it can be slightly complicated one to tackle. Taking a look at your particular circumstances will help you determine if you require separate garage insurance from your home insurance Florida and nationwide. If you have any questions about how to determine if you require additional insurance, contact Neighbors Insurance Agency in Florida.

Shed and detached garage insurance

Most homeowners’ policies cover any and all buildings or structures on the property. This typically includes any pools that you may have as well as any sheds and detached garages. What this means is that you do not have to worry about paying for a separate policy just to have your items covered.

Note, however, that your policy will typically only cover a small amount for any outlying structures. Normally, this hovers somewhere around ten percent of the total property value. Therefore, if your home is valued at $300,000 then your outlying structures such as your sheds or detached garages would be covered for $30,000. This can be enough to repair smaller damage, but if you are keeping valuable items inside those structures—as can sometimes be the case—you might find that this is not enough for you.

There are further exceptions to these rules and it is important to understand the complexities of these so that you may make a decision about purchasing additional coverage.

Exceptions to the standard

This inclusion of your garage in your home insurance Florida and nationwide only works if your garage falls within the standard guidelines. However, there are instances where your detached garage or shed may not be covered under your standard homeowners’ policy.

One prominent exception is when you are running a business out of your garage. If, for instance, you make jewelry in your garage that you then intend to sell, and something happens that causes damage to your garage, your regular home insurance policy will not want to cover it. This is because the space has technically become a business space and therefore requires a business policy. This is especially true if you have actual customers coming to your space because in the event that something happens to them, you are responsible for their injury and your home insurance policy will not cover them as guests on your property. Instead, they will insist that they should be covered under a separate home-business insurance. In this case, your garage insurance will function individually from your home insurance.

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Don’t assume everything on your property is covered under your homeowners’ insurance policy. You may fall under some exceptions to the standard and may require additional coverage to assure you are prepared if anything happens. This is especially true in Florida, where hurricanes and other natural disasters are frequent. For further information about home insurance Florida, contact Neighbors Insurance Agency.