Insuring Your Detached Structures
A detached structure is a building that is not part of your home.
Detached structures can be valuable buildings such as a garage, shed, barn or even the in-ground swimming pool.
If you insure your home you can already have 10% of your policy automatically extended to cover the cost of this insurance.
This will not cover the full insurance required but it is a good start without additional cost.
You just need to pay for the additional which does not equate to 90%, it is the cost of the insurance of the detached structure minus 10% of what you have insured your home for.
The detached structure insurance does have some traps that you need to be aware of.
The most obvious one is not adding to the insurance coverage that is extended by the 10% from your home insurance.
If you have to repair or replace that structure you could financially be facing a huge payment.
Another trap not so well known is if you use any part of the detached structure for business reasons (even if it is just a tiny amount) then the policy can be voided and your insurance company will not pay out.
This is even if the part of the structure that is used for business did not cause the damage.
To overcome this you need to carefully look at your policy and compare it to others that are available.
Either seek a change to your policy or transfer to another policy that will allow for the detached structure to used either partially or fully for business to ensure you have the right coverage.
Detached structures can be valuable buildings such as a garage, shed, barn or even the in-ground swimming pool.
If you insure your home you can already have 10% of your policy automatically extended to cover the cost of this insurance.
This will not cover the full insurance required but it is a good start without additional cost.
You just need to pay for the additional which does not equate to 90%, it is the cost of the insurance of the detached structure minus 10% of what you have insured your home for.
The detached structure insurance does have some traps that you need to be aware of.
The most obvious one is not adding to the insurance coverage that is extended by the 10% from your home insurance.
If you have to repair or replace that structure you could financially be facing a huge payment.
Another trap not so well known is if you use any part of the detached structure for business reasons (even if it is just a tiny amount) then the policy can be voided and your insurance company will not pay out.
This is even if the part of the structure that is used for business did not cause the damage.
To overcome this you need to carefully look at your policy and compare it to others that are available.
Either seek a change to your policy or transfer to another policy that will allow for the detached structure to used either partially or fully for business to ensure you have the right coverage.
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