Homeowners policy coverage part covering structures on the residence premises separated from the dwelling by a clear space or connected to the dwelling by a fence, utility line, or related connection. Examples include a detached garage, tool shed, driveway, swimming pool, gazebo, or fence. The limit of insurance for all other structures combined is 10 percent of the dwelling limit. Due to increasing home prices and lack of land availability, home construction changed in the United States in the 1970s. Builders stopped building homes with detached garages and, instead, built the homes with the garages attached or built under the home. At this point, many consumers began to view the charge for other structures in the homeowners policy as a charge for unneeded—and unusable—coverage.

As a result, some insurers started issuing homeowners policies without this coverage and giving the insured a rate credit. Others changed the wording in their policies to allow for the addition of the other structures limit into the dwelling limit, if the home owner had no other structures.


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