Which of the following would not be covered under Section 2 of a homeowners policy?

What's included under other structures coverage?

Other structures coverage on your homeowners insurance policy protects against damage to gazebos, detached garages, guest houses, sheds, and even fences.

Other structures includes property that's set apart from the main dwelling by a distinct space or connected only by a fence. Attached garages and attached decks are covered under your policy's dwelling coverage, while a detached structure such as a storage shed in the backyard falls under other structures coverage.

How much coverage does other structures insurance provide?

Although the amount can vary depending on your policy, your Coverage B limit is typically set at 10% of the limit for your policy's Coverage A, also known as dwelling coverage. For example, if your dwelling limit is $400,000, your other structures insurance coverage would be $40,000.

If your Coverage B amount wouldn't sufficiently pay to repair or replace your other structures, you may be able to increase it, depending on your insurer, by adding more coverage or an endorsement to your policy.

Are there limitations to other structures coverage?

Coverage B, like Coverage A, does not cover all types of damage. Here are some damages and events not covered by other structures insurance:

• Flood damage
• Earthquakes
• General wear and tear
• Gradual water damage
• Pest damage

Other structures coverage also doesn't typically cover business structures. Suppose you run a small business from a detached structure on your property, or you have a backyard shed that's been converted into an Airbnb or rental apartment. These may not be covered under your homeowners policy. Consider purchasing business insurance to properly cover business structures.

Learn more about homeowners insurance coverages.

Does other structures insurance coverage protect in-ground pools?

Depending on your insurer, an in-ground or permanent above-ground swimming pool falls under either dwelling coverage or other structures coverage. Since swimming pools are considered attractive nuisances, insurance companies often require them to be fenced. Make sure your personal liability limit covers your assets in case you're liable for injuries or damages.

An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance company’s responsibilities if a loss occurs. Many insureds purchase a policy without understanding what is covered, the exclusions that take away coverage, and the conditions that must be met in order for coverage to apply when a loss occurs. The SCDOI would like to remind consumers that reading and understanding your entire policy can help you avoid problems and disagreements with your insurance company in the event of a loss.

The Basics of an Insurance Contract

There are four basic parts to an insurance contract:

• Declaration Page
• Insuring Agreement
• Exclusions
• Conditions

It is important to understand that multi-peril policies may have specific exclusions and conditions for each type of coverage, such as collision coverage, medical payment coverage, liability coverage, and so on. You will need to make sure that you read the language for the specific coverage that applies to your loss.

The Declaration Page

This page is usually the first part of an insurance policy. It identifies who is the insured, what risks or property are covered, the policy limits, and the policy period (i.e. time the policy is in force).

For example, the Declarations Page of an automobile policy will include the description of the vehicle covered (e.g. make/model, VIN number), the name of the person covered, the premium amount, and the deductible (the amount you will have to pay for a claim before an insurer pays its portion of a covered claim).

Similarly, the Declarations Page of a life insurance policy will include the name of the person insured and the face amount of the life insurance policy (e.g. $25,000, $50,000, etc.).

The Insuring Agreement

This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit. There are two basic forms of an insuring agreement:

• Named–perils coverage, under which only those perils specifically listed in the policy are covered. If the peril is not listed, it is not covered.
• All–risk coverage, under which all losses are covered except those losses specifically excluded. If the loss is not excluded, then it is covered. Life insurance policies are typically all-risk policies.

The Exclusions

Exclusions take coverage away from the Insuring Agreement. The three major types of Exclusions are:

• Excluded perils or causes of loss
• Excluded losses
• Excluded property

Typical examples of excluded perils under a homeowners policy are flood, earthquake, and nuclear radiation. A typical example of an excluded loss under an automobile policy is damage due to wear and tear. Examples of excluded property under a homeowners policy are personal property such as an automobile, a pet, or an airplane.

The Conditions 

Conditions are provisions inserted in the policy that qualify or place limitations on the insurer’s promise to pay or perform. If the policy conditions are not met, the insurer can deny the claim. Common conditions in a policy include the requirement to file a proof of loss with the company, to protect property after a loss, and to cooperate during the company’s investigation or defense of a liability lawsuit.

Definitions 

Most policies have a Definitions section, which defines specific terms used in the policy. It may be a stand-alone section or part of another section. In order to understand the terms used in the policy, it is important to read this section.

Endorsements and Riders

An insurer may change the language or coverage of a policy at the time of the policy renewal. Endorsements and Riders are written provisions that add to, delete, or modify the provisions in the original insurance contract. In most states, the insurer is required to send you a copy of the changes to your policy. It is important that you read all Endorsements or Riders so you understand how your policy has changed and if the policy is still adequate to meet your needs.

Want to Review Your Policy? 

To obtain a copy of your insurance policy, please contact your insurance agent or company.

Which of the following is excluded under the Section 2 exclusions?

Which of the following would not be covered by a homeowners policy?

What does an HO 2 policy cover?

What are 2 types of coverage that are needed for homeowners insurance?