Limits & Settlement
Does Homeowners Insurance Cover Fences, Sheds and Garages?
Short answer
Usually, yes, under other structures coverage (Coverage B), which protects structures not attached to the house, such as a detached garage, shed, fence or guest house. It covers the same types of damage as the house, commonly at 10% of the dwelling limit. Fences are often settled at actual cash value, and structures used for a business may need separate coverage.
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At a glance
- Common limit: 10% of the dwelling limit, e.g., $30,000 on a $300,000 house.
- Covers the same perils as the house: fire, wind, hail, theft and similar.
- Fences are often paid at actual cash value.
- Business use of a structure may need a separate policy.
On this page
The Texas Department of Insurance describes other structures as structures not attached to your house, with examples including a detached garage, storage shed, pool or guest house, outdoor kitchen, barn or chicken coop. California’s guide gives detached garages and tool sheds as examples of Coverage B.
How much coverage is typical
TDI says most home policies include coverage for other structures at 10% of the house’s insured value: $300,000 on the house means $30,000 for other structures, and your deductible still applies. California’s guide also describes Coverage B as normally limited to 10% of Coverage A.
| Dwelling limit | Other structures at 10% |
|---|---|
| $250,000 | $25,000 |
| $300,000 | $30,000 |
| $450,000 | $45,000 |
If you have a large detached garage, workshop or guest house, 10% may not be enough. Ask whether the limit can be increased.
What damage it covers
TDI explains that the policy pays for the same types of damage to other structures as it does for the house, such as fire, hail, theft or sudden and accidental water damage. Flood is still excluded.
Fences
According to TDI:
- Wind damage to a fence is probably covered if you have wind coverage.
- Policies usually pay actual cash value for fences, deducting depreciation.
- Most policies don’t pay for fence damage from ice or snow unless the house collapses on the fence.
Illustration only: a wind-damaged fence costs $5,000 to replace; the insurer deducts $2,000 for depreciation, leaving $3,000 before the deductible. With a $1,000 deductible, the payment would be $2,000.
Business use
TDI advises asking your insurer whether you need a separate policy or extra coverage if you run a business from a structure on your property. A shed used as a workshop for sales, or a guest house rented to tenants, can fall outside standard coverage. See home business coverage.
Attached vs. detached
An attached garage is generally part of the dwelling under Coverage A, not Coverage B. If a structure is connected by only a fence or breezeway, ask how the insurer classifies it.
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Sources and how this page was checked
Page updatedThis page is general information written from the public sources below. It has not been reviewed by an insurance company, attorney or licensed agent for your situation. Your policy form, endorsements, insurer and state rules decide what is covered.
Sources
- Texas Department of Insurance — Home insurance covers other structuresRetrieved and reviewed October 25, 2026 for detached structures, the common 10% other-structures limit, fence settlement and business use of structures.
- California Department of Insurance — Residential Insurance: Homeowners and Renters (Form 401, rev. January 2026)Retrieved and reviewed October 25, 2026 for Coverage A–F descriptions, special limits on valuables, renters and condo coverage, dwelling limits based on rebuilding cost rather than market value, actual cash value, guaranteed and limited/extended replacement cost, building code upgrade (ordinance or law) coverage, inflation guard, FAIR Plan, surplus lines and binder/quote definitions. California rules (notice periods, broker fees, CA-specific laws) are not generalized nationally.
Before you rely on this page
- Read your declarations page, policy form and every endorsement; they control over any summary.
- Ask the insurer or agent to confirm limits, deductibles and exclusions in writing before you buy or cancel coverage.
- For state rules, deadlines or complaints, check your state insurance department directly.