Are Garages Covered by Home Insurance?

are garages covered by home insurance?Many homeowners are unfamiliar with the ins and outs of their homeowners insurance coverage. They’ll know they have coverage, and they’re probably familiar with their deductible. Beyond that, the details tend to be fuzzy until the need arises to familiarize themselves with their policy. One of the questions we’re often asked by our customers is, “Will my custom garage be covered by my homeowners insurance?” In general, the answer is yes, but there are always exceptions to the rule and special circumstances to be aware of. If you’re looking to renovate your garage or transform your space into a specialty garage, it’s a good idea to familiarize yourself with your insurance policy.

What If My Garage is Finished or Renovated?

Yes! Whether your garage is unfinished and full of dusty old boxes or you’ve recently upgraded it with luxurious amenities, it is covered by your homeowner’s insurance. However, just because your garage is covered doesn’t mean it’s insured for proper replacement cost. Make sure your policy covers you for replacement cost and not just fair market value. Chances are, if your policy only covers you for fair market value, an insurance payout won’t be enough to replace your stolen or damaged items to your satisfaction.

What If My Garage is Detached?

Yes! In general, any building on your property is covered by your homeowners policy. Just make sure your insurance agent or company is aware of any freestanding structures on your property like a shed, gazebo, or garage. You might want to add additional coverage. This is because, in many cases, insurance coverage of separate structures is limited to a percentage of the coverage amount of the main dwelling. Specific numbers vary by insurance company and policy, but, for example, if your home is covered for $400,000, your detached structures are often capped at a percentage of that value, like 10 percent. In this example, that means your detached garage would be covered for $40,000. If your garage or the possessions inside of it are worth more than that designated limit, you’ll want to look into adding more coverage.

What If I Run a Business Out of My Garage?

One exception to the general rule that garages are covered by your homeowners insurance is if you use your garage to run a business. If you’re using your garage as an office space for your small business or even as an area to manufacture, ship, or store goods for your business, it’s most likely not going to be covered under a typical homeowner’s policy. Be sure to consult with your insurance company in a situation like this so you can properly insure your garage and related business areas with proper coverage.

HWS Garages Can Build You a Garage Worth Covering

If you’re planning to renovate or finish your garage, don’t hesitate to get in touch with us about our garage construction services. Our friendly team of reliable experts would be happy to schedule a free, no-obligation consultation to go over your options and make sure you’re well-informed about the process of customizing your garage and any related concerns that go along with the process. This can include checking to see that your new garage is properly insured so you can enjoy it worry-free for years to come. With our quality workmanship and incredible range of custom garage options, you’ll be proud of your garage and will undoubtedly want to seek out the best possible insurance coverage for it.