Your homeowners insurance policy will pay to repair or rebuild your garage and to replace belongings that are stored inside it, but restrictions and limitations apply. Here are some important things you should know.
Coverage for Attached vs. Detached Garages
Your homeowners insurance policy is divided into several sections. Dwelling coverage will pay to rebuild your house if it gets destroyed by a covered peril. If your garage is attached to your home and it gets damaged or destroyed by a covered peril, the dwelling coverage portion of your policy will pay to repair or rebuild it.
If you have a detached garage and it gets damaged or destroyed by a covered peril, you’ll still be covered, but a claim will fall under a different section of your homeowners insurance policy. Other structures coverage applies to a detached garage, shed, fence and additional structures that are on your property, but not physically attached to your house.
The amount of coverage you’re eligible for will depend on which part of your policy a claim falls under. Your policy should have a high enough dwelling coverage limit to rebuild your house if it gets completely destroyed. The limit for the other structures part of your policy will be a percentage of your dwelling coverage limit (usually 10%).
Other Types of Coverage That Might Apply
Your homeowners insurance policy includes personal property coverage. It can pay to replace belongings, such as your lawn mower and tools, that you store inside the garage if they get damaged or destroyed by a covered peril.
Homeowners insurance won’t pay to repair your car if it gets damaged while it’s parked in your garage. You’ll have to file a claim with your auto insurance company. In some cases, you might have to file claims with both your homeowners insurance company and auto insurance company to cover damage to your garage and car, even if they were caused by the same event.
Your loss of use coverage might apply in some circumstances. If your garage is severely damaged or destroyed, your homeowners insurance company might pay for you to temporarily park your car elsewhere.
Perils That Are and Are Not Covered
A homeowners insurance policy typically covers losses due to fire, storm damage, theft and vandalism, but not damage that can be attributed to wear and tear, lack of maintenance, or pests. Standard homeowners insurance doesn’t cover claims related to flooding or earthquakes. If you’re concerned about those types of events, you’ll have to purchase additional coverage and pay higher premiums.
Review Your Homeowners Insurance Coverage
Read through your homeowners insurance policy so you know which types of perils are and are not covered and how much coverage you have. Many people don’t understand their policy, then get an unpleasant surprise when they submit a claim and it gets rejected. Contact your insurance company or agent if you have any questions or if you think you might need to modify your coverage.
