INDUSTRY INSIGHT
HOMEOWNER ’ S INSURANCE
SPONSORED CONTENT
GETTING COVERAGE RIGHT FOR YOUR DECK , POOL , AND OTHER STRUCTURES
One often-overlooked feature of a homeowner ’ s insurance policy is the “ other structures ” coverage , which is separate from the part of the policy that covers your residence . The damage coverage is often significantly lower than for the rest of your home , and claims are handled differently for these structures , including decks , pools , and fences .
It ’ s important that you look at the values carefully in your homeowner ’ s policies to ensure that your limits are enough to cover any damages should a covered event occur .
How other structures are covered
The standard Insurance Services Office ( ISO ) Homeowners 3 – Special Form , which many insurance companies include in their policies , covers other structures on the grounds where the home sits .
The insurer will consider a structure to be another structure and not part of the house if it is separated by clear space from the house . It will also consider it to be separate if it is connected to the house only by a fence , utility line , or similar structure .
Other structures on your property include things like :
• Gazebos
• Decks
• Pools
• Outside Kitchens
• Sheds
• “ Man Caves ” and Grandmother ’ s Quarters
• Fences
It is common for a policy to insure all of these structures for an amount equal to 10 % of the amount of insurance on the house . For example , if the policy provides $ 700,000 coverage on the house , it will provide $ 70,000 for other structures .
Whether that will be enough depends on how much it will cost to repair or replace the structures and how many there are . If a home has a stockade fence , a large deck , and a shed , the cost of replacing all of them after a fire may be much more than the amount of insurance , and you could be left holding the bag for the difference .
Other features of structures coverage include :
Water and ice – The ISO form does not cover damage to a fence , patio , pavement , swimming pool , pier , wharf or dock that results from when water freezes into ice , then thaws and puts pressure or too much weight on them .
Uncovered events – Just like the house and its contents , these structures are almost never covered for losses caused by earth movement , floods , power failure , neglect , or extra costs from the enforcement of updated building codes .
Different claim amount calculation – The ISO form permits the insurance company , when one of these structures that is not a building is damaged , to pay the lower of :
• The cost to repair or replace it .
• The structure ’ s actual cash value .
Actual cash value is typically the cost of replacing an item minus an amount for depreciation . If a 10-year-old fence would cost $ 10,000 to erect today and it has a useful life of 15 years , the insurer can deduct two-thirds of that amount from the $ 10,000 . The result is approximately $ 3,330 . The insurer would compare that to the cost of repair . If repairing it would cost more , the company would pay the lower amount .
What you can do Find out what the cost would be to replace your other structures . Compare that figure to the amount of other structures insurance your policy provides . Your current policy may provide enough , but find out whether the carrier will depreciate the value of a deck or similar property . The ISO form is the standard , but insurers seldom use it unchanged . Also , insurance companies ’ policies are not identical . It pays to compare . Some carriers might offer larger amounts of coverage on other structures , and some policies might not permit the company to depreciate the property .
Your homeowner ’ s insurance should provide you with as much protection as possible for the price you can afford . Find out before something happens how well it protects the valuable structures on your property besides your house . We can offer you coverage options , so give us a call .
DOING BUSINESS WITH A NEIGHBOR
FEELS GOOD .
Cusumano Insurance , a local family-owned business , has been serving the Pittsburgh area since 1958 . The agency represents several insurance companies offering various options for your personal and business insurance needs . Its experienced staff are creative problem solvers who help find the suitable insurance companies , products and discounts to meet your specific needs . Give them a call today for a free insurance review .
This Industry Insight was provided by :
Joann Cusumano Sciulli , AAI Agency Principal
Rosann Cusumano Elinsky , AAI , LUTCF Agency Principal
178 Clairton Blvd Pittsburgh PA 15236 ( 412 ) 655-4432 contactus @ cusumanoinsurance . com www . cusumanoinsurance . com Like us on Facebook
Cusumano Insurance Agency , Inc . • 178 Clairton Blvd • Pleasant Hills , PA 15236
WEST JEFFERSON HILLS ❘ SUMMER 2024 9