You ran out of space in the garage, so you decided to buy and install a storage shed in the backyard. Is it covered by your homeowner's insurance policy — it depends. Read on to find out if your shed is covered, and what you should do about it.

Structure Protection

Find out if your existing policy has a feature known as structure protection. This policy protection provides homeowners with a set amount of coverage for structures on their property, aside from their home, including a shed, and this protection is typically based on a set percentage.

For instance, the structure protection might protect these structures at 5% of your home's value. So, if your home is worth $250,000, you would be covered for up to $12,500 of damage to a shed. Make sure you find out if your policy offers this coverage, as well as at what percentage level to find out where you stand.

Contents Inside

Whether or not a shed is covered also has a lot to do with the contents that are stored inside. For example, consider a homeowner who uses the shed to store extra inventory for their small business. If their homeowner's policy has added coverage for business-related items, then the contents would be covered if they were damaged.

However, it's important to note that this type of coverage is not typically offered automatically, and the value of coverage isn't always high. If you use the shed in this manner, you might want to update the coverage. On the other hand, if you just have household belongings inside, you should be protected.

Damage Coverage

It's important to remember that the source of damage is also important when it comes to property insurance for structures like sheds. For example, if you have a shed that is damaged during a hurricane, but you do not have hurricane coverage, the shed will likely not be covered.

If your policy has structure protection in place, the coverage you receive still falls under the umbrella of your homeowner's insurance policy. For this reason, if you don't have coverage in place for the type of damage incurred to the shed, including flood and wind damage, any damage to the structure as a result of these elements might not be covered.

If you have questions about shed coverage, make sure you contact an insurance professional to learn more about your situation and to ensure you are protected.