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8 minute read Published on Jul 1, 2026 by BrokerLink Communications
Your home is one of the most important investments you’ll make. And while your current home may not be your forever home, you still want to maintain and protect it. That’s why having the proper home insurance coverage in place is important.
It’s pretty common to have other structures on your property that are not attached to your home, but you still consider them to be part of your home. Detached garages and sheds are two of the most common structures in this category, so of course, you want to protect them and their contents.
Like other types of coverage in your policy, there may be special considerations for these other structures, depending on what they are or how you use them. For instance, coverage for a fence around your property looks a bit different from coverage for a guest house on your property. Keep scrolling to learn more.
Your home insurance protects your house. But did you know that your home insurance policy covers other structures on your property as well? Other structures or buildings on your property are protected under this coverage if they're damaged by an insured risk or peril. For the most part, a homeowner's policy includes a section for other structures (often referred to as Coverage B) to help pay for things like repairs or replacements. Here’s a brief overview of Coverage B:
Home insurance coverage breaks your property into different coverage categories, and the section that applies to anything not physically joined to your house is commonly labelled Coverage B. Insurers use this term to group detached structures that sit on your land but are separate from your house or main structure.
Coverage A protects the house itself, while Coverage B applies only to detached structures. The limits for these two sections are calculated separately, and Coverage B is usually set as a percentage of the dwelling limit. Many insurance companies default to an amount near 10%, though each policy can differ.
That percentage becomes the money the policy uses if a covered event damages one of your detached structures. Because the limit is tied to your dwelling amount, it's worth checking that the numbers make sense for the size and value of what sits in your yard.
Here’s a quick pro tip from Mina T., a Personal Insurance Advisor at one of our Alberta BrokerLink branches:
Detached structures like a garage or shed, and their contents, are covered under a homeowner's insurance policy. There are some conditions or exclusions that may apply. It’s worth checking with your insurance broker to see how the structure coverage works in your policy, what your limitations are and whether they should be adjusted. —Mina T., a Personal Insurance Advisor
Your coverage for other structures can help protect buildings or features on your property that are not physically attached to your main house. Here are some common detached structures we see at BrokerLink:
Garage
Shed
In-ground pool
Pool or guest house(s)
Detached patio or dining area
Gazebo
Pool cabana
Fences
Mailbox
This part of your policy usually covers many of the same events that could damage your home, like fire, wind or theft. If something happens to a detached structure, Coverage B is what helps with the repair or replacement costs. Below, we provide a few illustrative case examples:
A homeowner in southern Ontario watched a storm peel back part of the roof on a detached garage. The structure itself was listed under Coverage B, so the repair costs fell within that limit. The insurer confirmed the damage was caused by a covered event and approved the estimate for a full roof replacement. The homeowner paid only the deductible. The value of the structure should match the Coverage B limit or repairs may exceed what the policy provides.
Another homeowner stored woodworking tools in a detached shed. After a break-in, the shed’s damaged door qualified under Coverage B, but the stolen tools were subject to personal property limits rather than the structure limit. Some higher-value tools reached their sub-limits.
Detached buildings often hold personal belongings and those items fall under your contents coverage, not your Coverage B. Be sure to confirm your contents coverage limits for more expensive items like tools, equipment or hobby gear before a loss occurs.
Most home insurance policies set the limit for detached structures as a percentage of the dwelling coverage, with a common default being 10%, though each insurance provider may choose a different amount. This percentage becomes the maximum available for repairs or replacement if a covered event damages a garage, shed or similar building.
For example, if your Coverage A is for $100,000 and your insurer offers 10% for Coverage B, you'd have $10,000 in coverage for your detached structures. So if damage to your pool house comes to $15,000, and your coverage is for $10,000, you would need to pay $5,000 out of pocket.
If the default limit isn’t enough, your broker can raise it through an endorsement, so Coverage B lines up with what your structures would actually cost to rebuild. It may bump the premium a little, but many homeowners find it worthwhile when they have buildings with higher finishing or utility costs.
A basic shed usually fits comfortably within a 10% limit. A finished guest house, a heated workshop or a larger pool cabana probably wouldn't. If a structure is expensive to replace, increasing the limit or adding a specific endorsement can help make sure your coverage matches the actual rebuilding price.
This really depends on what the purpose of your detached structure is. When other structures coverage might be insufficient:
Do you use a building on your property as an office? A shed that doubles as a home salon or photography studio carries different risks than simple storage. Business equipment, client visits or higher fire loads can push the replacement cost and liability exposure beyond what a standard limit can handle.
A detached guest house that's used for short-term rentals instead of just family visits can also raise coverage questions. Income-producing spaces often require specific endorsements and insurance companies may ask for higher liability limits or added protections tied to occupancy.
Further, some properties may include high-value or specialty buildings such as cedar saunas, pool houses with plumbing or custom workshops. These often cost significantly more to rebuild than typical outbuildings and will likely exceed the default coverage amount.
A local BrokerLink insurance advisor can review how each structure is built and used, then recommend specialty endorsements or increased limits that match the real exposure.
Detached structures face very different challenges depending on the part of Canada they’re in. In Alberta, fast-moving hailstorms can bruise siding or punch through aging garage roofs. Newfoundland’s long, heavy snow seasons can weigh down small sheds that were never designed for that kind of load. Along the Nova Scotia coast, wind and saltwater can test outbuildings that sit near the shoreline. In Ontario, spring runoff and flash flooding often reach smaller buildings first, especially those on simple pads instead of full foundations.
Because these risks vary so much, insurers may suggest higher limits for certain structures or note exclusions for hazards that need separate coverage. A broker who works in your province can help match your Coverage B limits to the actual conditions your property sees each year.
Severe weather patterns across Canada have been shifting quite a bit in recent years, and insurers have been tracking these trends closely when setting coverage requirements. The Insurance Bureau of Canada (IBC) reports that insured losses from severe weather in Canada reached more than $8.5 billion in 2024 and over $2.4 billion in 2025, driven by wildfires and hailstorms in Alberta and flooding in Ontario and Quebec.
Research published by Canadian Underwriter also shows that rebuilding costs have risen with labour shortages and material inflation, which can affect how much coverage is needed for detached structures with higher replacement values.
While this coverage protects you against many of the same risks covered by your home insurance policy, basic coverage does not cover every type of loss. Depending on where you live and what coverage add-ons your insurance advisor recommends, exclusions may include:
Regular wear and tear
Damage caused by neglect
Damage from pests or small creatures
Gradual water damage
Flooding
Earthquakes
Theft if the property is vacant or under construction
Since each situation is different, your insurance advisor will advise you about considerations you’ll need to make regarding your insurance policy. This includes any policy add-ons.
Home businesses are pretty common these days, so if you fall into this category, you may want to purchase additional coverage or a commercial policy to protect your business. Other structures insurance simply covers detached buildings on your property, but what they are used for may determine which other add-ons you should consider.
Your BrokerLink advisor can work with you to ensure everything makes sense to you and that you’re covered for only the things you need.
If you don't have any detached structures on your property, you may be wondering if you can remove the coverage from your policy. The short answer is that most insurers don't allow removal of Coverage B entirely.
Most home insurance covers detached structures by default because these features are considered part of the property as a whole. In many cases, insurers treat Coverage B as a standard component of the policy, and removing it entirely is not always possible. Even if an insurer does allow a reduction, the savings are usually small, since this portion of the premium represents only a fraction of the overall cost anyway.
But before considering a change to your policy, take a moment to think about what sits on your property. Homeowners may overlook items that still qualify as structures, such as fences, small storage buildings, mailboxes set in concrete or simple utility enclosures. If any of these are damaged, removing Coverage B would mean paying the full repair cost out of pocket.
When you’re going over your home insurance, try to give your broker a clear picture of everything you have on your property. Start with the basics, like what types of structures you have and how you use each one. It also helps to mention whether the structure is permanent, what it’s made of, and if it has things like electricity, plumbing or heat.
From there, you can ask your broker to walk you through the limits and exclusions that apply to each structure. This helps make sure your homeowners' insurance policy will reflect what these buildings are actually worth.
When an insurer is figuring out coverage limits, they'll look at:
The type of structure(s)
How it was constructed
How close it sits to the main home
How it's used (e.g., storage, living space, income purposes)
Whether it contains utilities (i.e., a higher chance of fire or water damage)
A heated workshop or an in-ground pool and pool house with plumbing carries a higher replacement cost than a simple storage shed, so the insurer may recommend stronger limits to reflect the true rebuild value. They will also likely consider whether the structure was professionally built and how well it has been maintained.
Get the information you need to make an informed decision by speaking with a BrokerLink advisor today. Let us help you find the best coverage for your insurance needs.
We’re here to help protect you, your family and your home. Our team of experienced insurance brokers can help you get the right coverage for your property and answer any questions you have about other structures coverage. Get a free quote with BrokerLink today.
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