Will Homeowners Insurance Cover My Garage?

Will Homeowners Insurance Cover My Garage?
While your main dwelling is the heart and soul of what homeowners insurance is all about, it isn’t by any stretch the only thing covered in a standard policy. Your garage (and other structures like sheds, gazebos, and fences) can be covered as well.
Read on to learn the basics of how garages are handled in most home insurance policies and how to make sure you cover your garage against damage, total loss, and loss of personal property stored in it to a sufficient degree.

Homeowners Insurance Coverage B
Typically, if your garage is attached to the main dwelling, then it is simply counted as part of the house itself. For detached garages, however, the coverage is under “Part B” of the policy.

Part B covers detached structures, including garages – normally with a coverage limit of 10% of the coverage for Part A (main dwelling coverage.) So if your home is covered up to $250,000, then your garage’s limit is $25,000.

That limit also applies to all other detached structures – that is, to them and your detached garage taken together. If you feel that the 10% rule isn’t enough, then talk to your insurance agent about adding additional coverage.

It will involve a small premium increase, but it may be worthwhile if your garage is large, valuable, or a place where you store a lot of important personal property.

Covering Garages Used For Business Purposes
When it comes to parking your car in your garage or storing regular personal property in it, that’s not a problem as far as homeowners insurance is concerned. It’s covered. But if you use your garage for business purposes, including for working on items you intend to sell or storing business property, then you need special coverage.

Homeowners insurance claims include liability, but if you have customers coming in and out of your garage, the insurer doesn’t want to cover business liability at the home liability price. It will be necessary to make some upgrades.

On the other hand, if you only use your garage for limited home business activities and storage, that’s a far cry from it being a full-fledged commercial garage. Your insurer understands this and will typically allow you to keep your garage covered on your home policy and add extra liability coverage and/or professional liability insurance for a relatively small premium hike.

Remember there are four major coverage points that apply to most insured garages: replacement, repair, liability, and personal property loss of garage-stored items. If you use your garage for business purposes at all, then that is a fifth point. Be sure your policy gives you everything you’re going to need garage-wise.

To discuss getting your attached or detached garage fully covered with homeowners insurance, contact a helpful agent at Flagler County (FL) Insurance Agency today!