When it comes to installing garden sheds, one aspect to consider is whether or not the building and its contents are covered by insurance. Given how many people use their sheds, having coverage is absolutely critical.
Not every home insurance will automatically cover your shed and its contents, which is why you may need to check to see if you are covered. Here is what to look out for in your insurance.
Benefits of Insuring Your Shed
First let’s look at why it is so important to cover your shed, and that is because of the contents that you have and the ease of entry into a shed, which can be a potential risk. Most of us don’t have alarms on our sheds, most have buildings that are pretty easy to break into and almost all sheds are placed outside, which could also make breaking into easier. Power tools and other pieces of equipment can cost some serious money, which is why we need to make sure they are fully covered.
The good news is that almost all homeowner insurance features a section which discusses detached buildings on the property, such as gazebos, workshops and also garden sheds. Specifically what is being covered here is the contents of those buildings, and not the buildings themselves. If someone should break in and steal your power tools, then the insurers will pay out for you to replace those power tools. If your garden shed was to burn down then the insurance will not pay the full amount to replace it.
For most insurers, they will commit to paying 10% of the face value of the policy. So if your policy limit is $300,000 for the cost of your house, the most that you would be able to get is $30,000. You may think that this is more than enough to get a new shed, but if you have a large unit which is full of expensive items, then it may not go as far as you’d like. Custom sheds are often much more expensive than standard sheds, which is worth thinking about in terms of how much you could be paying to replace.
What is Not Covered By Home Insurance
There are a number of shed-related issues which are not covered by your home insurance, which are also important to bear in mind. For example, you will have no cover for mould on the shed, or any damage this causes. Furthermore, you will not have any protection if the shed gets flooded, which could happen if there is a sewer backup or a burst water pipe.
If you are in any doubt about what coverage you have for your shed, then the smartest option is certainly to speak with your insurer. The policy documents are incredibly lengthy and highly specific, which is why the best course of action is to speak to your insurer directly.