Are you a homeowner or a property owner that is considering adding a building to your investment? This could be a detached garage, a storage shed, a workshop, etc. This can be a great idea for many homeowners as it gives you more space to store things like vehicles and other knick knacks you need a place for. I can increase the value of your property, which is great, but it can also add risk factors to your property and insurance. If you don’t already have insurance, this is a great time to invest and if you do, you may want to review it before adding this structure. The team of experienced agents at Ebensburg Insurance are here to help you with your profile and make sure everything on your property is adequately covered.
How Homeowners Insurance Works with Detached Buildings
Prior to starting the construction on your detached building, bring this up to your insurance agent and let them know about the desired size, construction, location, etc. of your structure. They will then use this information to update your insurance policy to include the structure. On the majority of homeowner’s policies, there is coverage available for structures that are separated from the home. They are called “other structures.” Your insurance agent will be able to tell you if your structure qualifies under this distinction.
What are the Costs of Rebuilding or Repair
When considering insurance for these buildings, the first question you should be able to answer is how much it would cost you to repair or rebuild this structure if something were to happen under a loss that is covered by insurance. As we all know, construction costs can climb incredibly quickly. In a detached building, these costs can contribute to things like:
Finishing walls and ceilings
Electrical work and connection
Plumbing and water
HVAC
Doors and windows
Roofing and siding
If the structure costs more to build than a regular, basic storage shed, it may change whether your existing structure's policy is enough for this new build. Adding a building to your property can be a good time to go over the repair costs of everything else on your policy. This way, you can update all of your coverage at once, instead of having to do it at two separate times.
What Will You Be Using the Structure for?
What the building is made out of is only the first step in updating your coverage. What will be kept inside this structure also changes what your policy will look like after the fact. For example, if it is a detached garage or workshop, there might be cars, power tools, sports equipment, gardening tools, or other things that cost a substantial amount of money. Certain things may require you to add special limits to your policy that cover the contents of your structure.
If there will be more expensive equipment, collectibles, or anything else with a high value, you should let your insurance agent know. The cost of these things may not be covered under the limits of your new policy.
If the Building is Being Used as a Business
If this place transforms from a hobby workshop into a haven for you to work on projects for any kind of small business, that changes how your insurance will look. Homeowners insurance usually does not cover everything you need to be covered for a business. For example, if any customers enter the building, if you add employees to the operation, or if your inventory is stored in the space, your insurance needs to be more thorough. Keep your agent updated and they will handle your policy to make sure everything is covered.
Liability Risks With Your New Structure
A newly built, detached structure can bring a whole host of liability concerns to your property. Whether its power tools, machinery, electrical equipment, or something else, these things cause a risk for injuries. Check out your personal liability insurance with your agent and see if it might be more beneficial for you to invest in umbrella insurance as a part of your plan.
New Fire and Electrical Risks
Any kind of workshop or garage that has electrical in it can cause risk for a fire or an electrical malfunction. This can be a large piece of equipment that runs on electrical or battery, a heating system, or anything in your structure that could be considered flammable. Make sure you have a professional there to install all of these types of things to ensure they are done correctly and aren’t posing a hazard to your safety and the safety of anyone else who lives on your property.
Contact Your Insurance Agent with Any Major Property Changes
As a homeowner, it is easy to get so caught-up in the building and designing of your home and property that you forget to contact your insurance agent. Major home improvements or new builds should be brought up to this agent to make sure they are covered under your policy. Updating your policy to include them is a quick process and can save you large sums of money in the future. The team of agents here at Ebensburg Insurance are here to take care of you, your home, and your property, no matter what you choose to do with it. Contact us today by giving us a call at (814) 472-9557 if you are making plans to build something new!
