Coverage B - Other Structures

Other Structures or Coverage B applies to the other structures that are on your property yet not attached to the primary dwelling. Other Structures may be any of the following: Detatched Garage, Barn, Fences, Guest House, Pool House, Shed, etc.

Replacement Cost Calculation

A fair method to calculate Other Structures coverage for your policy would be to estimate how much it would cost to build a home per square foot and multiply that number by the amount of square feet your Guest House or Garage has. Construction costs may vary by locality and can change from as low as $60 to upwards of $200 per square foot for just a common construction grade home. More refined or upscale homes should use a higher cost per square foot for replacement in the $150-300 range. This also is dependent on locality. Reconstruction costs in Manhattan, New York are going to be significantly higher than in Sioux City, Iowa.

Marshall and Swift offers a report that you can obtain where you can more accuarately calculate your replacement cost. Many inusrance companies use their replacement cost calculation model to figure out what Coverage B limits should be set to.

Extended or Guaranteed Replacement

Other Structures or Coverage B generally does not carry an Extended or Guaranteed Replacement Clause. If you have any structures that are not common to an average single family dwelling, then an additional amount needs to be extended to the limit of Coverage B.

Calculating the Standard Coverage B Limit

By default the Coverage B Other Structures Limit is 10% of the Coverage A Dwelling amount.

For example if the Coverage A amount is $400,000. The Coverage B would be $40,000. Coverage B can be increased at request by the insurance Agent per request or determination that an additional amount is needed. Coverage B is never lower than 10% of Coverage A.

GetCoveredUSA.com Insurance Tip: If you have significant upgrades to other structures or have an additional guest house, detatched garage, barns or other structures on the property, it is very likely that you need to add some additional coverage on to Coverage B. Consult with your Insurance Agent to make sure that your insurance need is correctly calculated.