Wooden backyard shed under leafy trees shows a typical situation when homeowners ask are sheds covered by home insurance

January 14, 2026

Are Sheds Covered by Home Insurance? A Guide to Other Structures Coverage

Backyard sheds do a lot of quiet work. They hold tools, bikes, lawn gear, and all the things that never quite fit in the garage. But when damage happens, many homeowners pause and ask the same question: are sheds covered by home insurance?

Yes, most of the time. The details, though, matter more than people expect. That is where other structures' coverage comes in.

What is "Other Structures" Coverage in Home Insurance?

Compact cedar shed with double doors stands against a wooden fence on a stone patio, showing a typical setup related to are sheds covered by home insurance

Home insurance does more than protect your house. It also looks after certain outdoor structures that sit around it.

This part of your policy is known as other structures coverage, often labeled as Coverage B. It's designed to protect buildings on your property that are separate from your main home.

Defining Coverage B: What Qualifies as a Detached Structure?

Coverage B applies to structures that aren't physically attached to your house.

There is a simple rule insurers use. If a structure is separated from your home by open ground, a fence, or a utility line, it usually qualifies.

That clear space is what matters. A shed across the yard qualifies. A garage connected by a breezeway often does not.

Are Sheds, Garages, and Gazebos Automatically Covered?

Most standard homeowners policies include Coverage B by default.

HO-3 and HO-5 policies typically cover:

Detached sheds
Detached garages
Gazebos
Pool houses
Fences

You usually don't need to request this coverage. It's already part of the policy.

The Surprise Entry: Are Driveways and Fences Considered Other Structures?

Narrow wooden shed with sliding doors open shows an empty interior, illustrating another situation where people wonder are sheds covered by home insurance

This catches many homeowners off guard.

Driveways, sidewalks, fences, and retaining walls are often classified as other structures. They're not always covered under the main dwelling portion of your policy.

If a falling tree damages your driveway, Coverage B is usually where that claim lives.

Understanding Your Personal Property Limits Inside Outbuildings

Covering the shed itself is only half the story. What you store inside it matters just as much.

Home insurance treats structures and belongings as two separate things.

What is Personal Property in Home Insurance?

Personal property falls under Coverage C.

This includes the items you own, such as:

Tools
Bikes
Lawn equipment
Sports gear
Stored household items

Coverage C protects your belongings. Coverage B protects the structure that holds them.

Does Shed Insurance Protect My Lawnmower and Tools?

In many cases, yes. But limits apply.

Items stored in a detached shed may be subject to lower coverage limits than items inside your home. Some policies treat them as off-premises property, even though they're still on your land.

This is where policy details matter.

Insurance for Sheds and Garages: Protecting High-Value Equipment

Wooden shed with open double doors displays shelves, hanging tools, and a solar panel on the roof, a real-world scenario for are sheds covered by home insurance

Expensive equipment can outgrow standard limits quickly.

If your sheds hold costly tools or specialty gear, you may need Scheduled Personal Property. This adds specific coverage for individual items and often removes restrictive limits.

It's a smart move for homeowners with higher-value storage.

Determining How Much Coverage You Actually Need

Most homeowners never check their Coverage B limits until after something goes wrong.

Those limits are usually tied directly to your home’s insured value.

How the 10% Rule Dictates Your Payout

Other structures coverage is commonly set at 10% of your dwelling coverage.

For example:

Home insured for $300,000
Other structures coverage equals $30,000

That amount must cover all qualifying structures on your property, not just your 8×8 Sunshed Garden Shed.

When to Increase Your Limits for Luxury Outbuildings

Small wooden shed with a single door and a window box of pink flowers sits in a backyard garden, a common example when asking are sheds covered by home insurance

The standard limit works for basic sheds. It struggles with higher-end buildings.

Guest houses, ADUs, pool houses, and large workshops can easily exceed default coverage. Increasing your Coverage B limit helps avoid expensive surprises after a claim.

Other Structures: ACV vs. RCV

How your insurer pays matters as much as how much they pay.

Actual Cash Value accounts for depreciation.
Replacement Cost Value covers the cost to rebuild new.

A ten-year-old shed paid at ACV may leave you short when rebuilding costs are higher.

Can I Remove Other Structures Coverage to Save Money?

Some homeowners ask this after noticing they don't have a shed.

In most cases, removing Coverage B doesn't save much money.

Why Coverage B is Usually Non-Negotiable

Coverage B is often bundled into standard policies at no extra cost.

Even when removal is allowed, the premium reduction is usually minimal. The risk of losing coverage often outweighs the savings.

Mortgage Requirements and Your Backyard

Open wooden shed with double doors shows neatly organized gardening tools and supplies, raising the question are sheds covered by home insurance

Mortgage lenders usually require a full homeowners policy.

That policy typically includes Coverage B, even if your yard is empty today. Lenders focus on future risk, not current layouts.

The Hidden Risk of Opting Out

Coverage B protects more than sheds.

It also covers:

Driveways
Fences
Walkways

Opting out leaves those exposed to storms, falling trees, and vehicle damage.

Common Exclusions for Outbuildings and Driveways

Coverage B is helpful, but it has limits.

Knowing what is excluded is just as important as knowing what is covered.

The Business-Use Trap: Converted Offices and Workshops

Using an 8×12 Sunshed Garden Shed for business changes everything.

Storing inventory, meeting clients, or running operations can void standard coverage. Business use often requires a separate endorsement or policy.

Why Your Driveway Isn't Covered for General Cracking

Larger wooden shed with wide open doors reveals a ride-on lawn mower stored inside, highlighting why homeowners ask are sheds covered by home insurance

Insurance doesn't cover gradual damage.

Wear and tear, aging, and settling cracks are excluded. Sudden events like falling trees or explosions are treated differently and are often covered.

Security Mandates: The "Forced Entry" Requirement

Some insurers require proof of forced entry for theft claims.

A lock matters. Without signs of forced entry, claims involving outbuildings can be denied.

Securing Every Square Inch of Your Land

So, are sheds covered by home insurance? In most cases, yes. But coverage depends on limits, usage, and how your policy is written.

Understanding other structures coverage helps protect more than just your house. It helps safeguard the parts of your property you rely on every day, even if they sit quietly in the backyard.