Solitude Sheds and Other Structures: Does Your Homeowners Policy Cover Them?

If you’ve decided to build a solitude shed, let your insurance broker know. Sure, it might seem counterintuitive to tell others about your secret hideout. But the last thing you need is to spend your cash on a zen escape only to discover it’s not covered.

Insuring your outdoor structures, including solitude sheds

Most homeowners policies cover outdoor structures. This coverage is called “Part B Other Structures coverage” because you’ll find it in Part B of your homeowners policy.

Renters insurance policies don’t have coverage for outdoor structures built in. Before you build, talk to your property owner and your broker.

Outdoor structures include permanent structures that aren’t attached to your house, like a detached garage, barn, greenhouse, gazebo — or solitude shed. Standard policies cover outdoor structures up to 10% of your dwelling limit. This is the amount your house is insured for.

For example, let’s say your house is insured for $350,000. This is the maximum amount your insurance company will pay to rebuild your home. All your outdoor structures combined would be covered for up to $35,000, 10% of your home’s insured value. You already have a detached garage and a gazebo on your property. That’s nearing your $35,000 limit. Add your solitude shed to the mix, and you’re straddling the line. If it’s a high-end shed, you’re over the limit.

An unpleasant scenario

Imagine kicking back in your solitude shed, music playing. You’re in your zero-gravity chair. Sweet serenity.

Suddenly, you’re interrupted by a weather alert on your device. You take shelter in your house. You emerge later to find a downed tree across your garage and shed. Your gazebo suffered some hail and wind damage, but it’s salvageable.

Alas, your garage and solitude shed didn’t fare as well. The insurance adjuster says both are a total loss. The estimates to replace and repair everything exceed your $35,000 maximum. Your insurance company stops reimbursing you, regardless of the remaining damage.

You’re left with decisions: pay for the solitude shed out of pocket (again) or go without.

Policy limits are critical because they’re the maximum your insurance company will pay for a claim. Would your policy’s standard 10% limit cover the cost of rebuilding your dream garage and shed retreat?

Call your broker

Don’t let a disaster put a damper on your downtime.

Call your insurance broker if you’re erecting a new outdoor structure or improving an existing one. They can extend your outdoor structure limits as high as 30%, giving you protection for your cherished private time and space.