Owning rental property is a business, and landlords have legal, financial and maintenance responsibilities, as well as an obligation to provide a safe environment for their tenants.
Rental property insurance offers property and liability protection to safeguard the interests of landlords and property owners.
But, similar to a standard homeowners policy, insurance for a non-owner occupied residential rental property focuses mainly on the physical structure of the dwelling. Some policies typically exclude coverage on additional permanent structures that are on the premises, such as fences, garages, sheds, gazebos and in-ground swimming pools. And in most cases default coverage limits for detached structures is generally low.
Rental Dwellings Detached Structures Insurance is a stand-alone policy that offers adequate protection with higher limits to pay for repair or replacement of damaged detached structures following a covered loss.
What is Rental Dwellings Detached Structures?
Rental Dwellings Detached Structures Insurance is designed to protect landlords and property owners from loss or damage to structures on a rental property that are not physically connected to the main dwelling. These may include detached garages, tool sheds, pool houses, fences, and similar outbuildings. These structures can present unique property risks, especially when they house equipment or are used by tenants.
Who Needs It
This coverage is ideal for landlords, real estate investors, and property managers who own non-owner-occupied rental homes. It's particularly important for those with high-value detached structures or properties rented to multiple tenants, such as duplexes or single-family homes with exterior amenities. Operators of dwelling units other than apartment buildings may also find this protection essential for managing facility risks and liability exposures.
What It Typically Covers
Detached structures insurance generally includes:
- Repair or replacement costs for detached garages, sheds, gazebos, fences, and similar structures after a covered peril
- Damage from fire, wind, hail, vandalism, or theft (subject to policy terms)
- Some policies may include limited coverage for permanently installed fixtures or equipment stored inside these structures
For example, if a windstorm damages a rented property's detached garage, this coverage can help pay for repairs without tapping into the main dwelling policy limit.
Common Exclusions or Limitations
Most policies exclude:
- Wear and tear or maintenance issues
- Detached structures used for business or commercial auto exposure
- Structures not declared or listed in the policy
Additionally, default limits on standard rental dwelling policies may only offer minimal coverage for detached structures—often too low to cover full replacement costs.
Factors That Influence Cost
Premiums for this type of coverage can vary based on:
- Location and value of the detached structures
- Construction materials and fire resistance
- Security features and risk management considerations
- Claims history on the property
Proof of Insurance & Compliance
Some municipalities or lenders may require proof of adequate insurance for detached structures as part of broader risk mitigation efforts. Having separate or enhanced coverage can support compliance and demonstrate proactive asset protection.
How to Get a Quote
Protect your rental investments—get a quote for Rental Dwellings Detached Structures Insurance today to explore coverage options tailored to your property's needs.
For broader coverage needs or bundled options, consider reviewing related offerings such as US Assure Rental Dwelling Insurance or specialized protection for Operators of Dwellings Other Than Apartment Buildings.
Frequently Asked Questions
Does standard landlord insurance cover detached structures?
Most standard rental dwelling policies offer limited coverage for detached structures, often with low limits or exclusions. A separate policy may be needed for full protection.
Are fences or gazebos included under detached structures insurance?
Yes, if they are permanent and declared in the policy, fences, gazebos, and similar features can typically be covered.
Do I need this coverage if my rental property doesn’t have a garage?
If your property includes any detached features—such as sheds, in-ground pools, or fences—this insurance can still be valuable.
Is this policy available for vacation or short-term rentals?
Yes, but availability may vary by provider. Short-term rental properties may also require separate or additional coverage types.
What types of incidents are covered?
Covered incidents usually include fire, theft, vandalism, hail, and wind damage—always check your policy for specific terms and exclusions.
Still have questions? Talk to a local insurance expert.