With the average price for materials ranging between $17-$24sqft, it can cost homeowners about $2,500 to build a typical 10’x12′ DIY shed. Depending on the size, style, siding, roofing, and extra features such as plumbing, electrical, overhead doors, or solar panels, the cost can soar upwards of $10,000 or more. Then, if you consider what’s being stored inside of your shed? The total value of the structure and its contents can undoubtedly raise a few eyebrows and questions, especially when it comes to being vandalized or totally lost due to a natural disaster or fire.
There are several reasons why homeowners might have a shed on their property. In most cases, these structures are covered by their homeowner’s insurance policy; however, there are also cases where they are not. The biggest mistake that some homeowners make is failing to call their insurance company to see if the new shed and its contents will be covered under their current policy. This guide is designed to help the average homeowner understand how it works with some tips along the way, and without further ado, here’s everything you need to know about shed insurance.
What’s Other Structures Protection?
Whether you have a shed, detached garage, gazebo, chicken coop, fence, or in-ground swimming pool located on your property? In the world of insurance companies, this type of homeowner’s insurance policy is known as other structures protection. In general, the standard coverage is about 10% of your entire home’s insurance policy. For example, if your home is insured for $150,000? Under the other structures protection policy, your shed and other outbuildings would be insured for $15,000.
It’s essential to call your insurance company or read the fine print in your homeowner’s insurance policy to know what the number of your coverage limits are. The next thing you need to know is the value that your new shed brings to your home? If your new shed has an amount more than what your current coverage limits are, it’s a good idea to have your insurance agent raise and adjust your coverage limits to protect your investment.
What’s the Value of Your Shed?
DIY sheds generally include just the cost of materials to build it and perhaps a good shed plans from Shedplans.org to work from, but you still need to know what it’s worth before you talk to your insurance company about raising your rates. A simple way to get a rough estimate of your shed’s value is by taking the cost of materials and tripling it. Most professional contractors charge about two thirds above the cost of materials for their labor.
On the other hand, you can expect that most insurance companies will want proof of the structure’s existence and paperwork backing its value, especially if they’re going to write you a check to repair or replace your shed. In cases such as this, it’s always best to have a home appraisal conducted. You can easily find a professional with any appraisal management company. These experts are certified and licensed in their perspective states or countries to determine the value of a structure objectively, fairly, and without bias opinions.
Does a Homeowners Insurance Policy Cover the Shed Contents?
Most homeowner’s insurance policies will have a set amount of protection for personal property. This also includes the contents stored inside of your shed or other outbuildings. The amount of protection is typically determined by the amount of insurance outlined in your home’s insurance policy. While insurance companies cover certain items stored in outbuildings such as ATVs, lawnmowers, power equipment, garden tools, there may be a limit to what your insurance company is willing to fork over.
On the flip side of the coin, items subject to damage from moisture and humidity like clothing, photographs, and other personal effects, in most cases, wouldn’t be covered by your insurance company. Therefore, these types of personal items should be kept safe in your house to qualify as being insurable under your insurance policy’s protection for private property.
Are There Any Limits on Shed Insurance?
In the real world, although your shed and its contents are covered under your homeowner’s insurance policy, it’s wise to talk to your agent about your policy’s stated coverage limits. This allows you to make a few different decisions based on what best fits your needs.
For example, let’s say your shed’s finished value is $5,000, and you’re basically using it for storing lawn and garden tools and supplies with a riding lawnmower that’s valued on the lower end of the scale? In most cases, this will not affect the limits on your homeowner’s insurance policy, which also includes the other structures protection plan. Meaning, your current coverage rates, and limits will not be affected.
When Does a Shed Limit Apply?
When you have specific items stored in a shed or outbuilding, limits will apply. As an illustration, if you have a $10,000 side-by-side ATV in your shed and a natural disaster or fire occurs? There may be a limit of $2,500 on the entire contents of the shed, including your expensive toy. Other items where restrictions may apply include but are not limited to:
- Guns & Hunting Bows
- Woodworking equipment
- Expensive power tools
- Small farm machinery
- Zero-Turn riding lawn mowers
Pro Tip: To protect expensive items that are stored in your shed, talk to your agent about additional coverage for these specific items. You may discover that it’s best to insure them separately as opposed to raising the coverage and rates on your homeowner’s insurance policy.
Is There Anything Else That I Should Know About Shed Insurance?
One key component to shed insurance for theft claims is to make sure that you have either a keyed lock or a paddle lock installed on the doors of your shed. Contrary to what you may believe, some insurance companies will not give you a dime if you don’t have a lock on your shed, and theft occurs.
Anytime that you have a question about what your homeowner’s insurance policy covers, contact them and get it to explain to you because the information you need to know is usually contained in the small print that every homeowner hates to read. And lastly, you can certainly benefit from building a new shed yourself, but make sure you are covered.
Tags: average cost, backyard, garage, home improvement, insurance, repair, shed
As contract attorneys who provide a range of realty and mortgage associated legal services, including genuine estate closings and dealing with estate conflicts, we at Mcgrath Spielberger, PLLC know that most customers actually don’t comprehend private mortgage insurance. Referred to as PMI, private mortgage insurance is to benefit the lending institution, not the debtor.
PMI is generally required if the circumstances consist of a private mortgage loan in which less than 20% of the list prices/ appraised worth is put down in advance. From the lender viewpoint, PMI is an extremely good thing as the debtor needs to pay for an insurance coverage which names the lending institution as the recipient, with the lending institution (or whomever winds up owning the loan) possibly having the ability to make a claim on the policy if the debtor defaults on the loan as default leads to the loan provider not being paid back completely.
In many situations, according to the professional advise of https://mcgrathspielberger.com, the premium payments the borrower needs to produce personal mortgage insurance are rolled into the debtor’s regular monthly “mortgage payment”. The details regarding the original PMI arrangement, including the payment amount, are understood in advance of the realty closing. Borrowers/purchasers ought to be asking concerns about PMI prior to closing as compared to after (although much better to ask later on and know than to not ask at all).
It’s likewise very crucial to understand when you may be able to cancel your PMI– and the associated payments, thus reducing your month-to-month payment. Make sure to get into the details of your contract with a local real estate contract attorney in charlotte nc areas to learn more about your specific situation.
No matter what kind of money you pump into your home — whether you dig a swimming pool, design a state-of-the-art kitchen or even build an addition that doubles your square footage — your property will only ever be worth so much. That’s because real estate agents and buyers use home values in your neighborhood to determine the best price for your home; the improvements you make to your lot have a relatively minor effect on your home’s value.
It follows, then, that to boost your property value, you need to be sure your neighborhood is increasing in quality alongside your own home. Here are a few tips to help you (and your neighbors) improve your neighborhood, so everyone can enjoy higher property values.
Develop Community Pride
If you aren’t happy to live where you live — indeed, proud of your surroundings and the people around you — your efforts to improve your neighborhood won’t have much of an impact. However, it is important that you not only enhance your own feelings toward your community but strive to grow pride all other community members, as well. In areas with high levels of community pride, residents are more likely to voluntarily keep their properties nice and comply with governing documents like HOA regulations. You can foster community pride through frequent, positive communication with your neighbors.
Keep Everything Clean
Trash blows out of garbage cans and is littered by inconsiderate passers-by, even in the most expensive neighborhoods. However, if you and your neighbors don’t commit to picking it up, no one else will. That means fast food wrappers, plastic grocery bags and other unsightly bits of debris could float around your neighborhood, catching the eye of visitors and potential buyers. Whenever you see a bit of trash, you should grab it and dispose of it properly to create a clean neighborhood for everyone.
Focus on Landscaping
Visitors to your neighborhood can’t see inside your home, so they won’t know about your expensive and impeccable interior design. Instead, they will judge neighborhood value based on exterior style, which means you need to focus much of your home improvement efforts on your landscaping. Most importantly, you should avoid allowing your flora to fall into disrepair. If you lack the tools and knowledge to keep your trees and grass in perfect health, you can hire a yard and lawn care service to maintain your outside spaces and increase the value of your home.
Push for Infrastructure
If your neighborhood is riddled with potholes and cracked sidewalks, you need to ensure those get fixed. You might also want to add features like bike paths or a dog park. If you can get a number of neighbors together to lobby the city council for street repair in your area, you can get the funding for infrastructure maintenance you need to boost your neighborhood’s value. You might need to practice persistence as nothing in the government moves fast.
Get Involved in Schools
For one reason or another, neighborhoods with good schools are also those with high-priced houses. That means you need to invest in your area’s schools if you want to attract buyers with deep pockets. Even if you don’t yet have school-aged children, you can take an interest in the upkeep, progress and politics of nearby schools. For instance, you can attend school board meetings, donate your money and volunteer at events and generally help the school earn more funding for better programs. Then, whether or not you have kids who use those schools, buyers will be attracted to the district’s reputation.
Contact Real Estate Agents
To improve your neighborhood value, you need the right kind of neighbors. Generally, renters are bad for home prices; because they have little concern for property values, they’ll do the minimum with regards to upkeep and improvements. That’s why you want real estate agents in your area to focus on pushing properties onto owners instead of investors. If you and your neighbors are on the same page, those who sell their homes might be willing to tell their agents that they’ll only entertain offers from potential owners. While many agents usually try to sell properties to the highest bidder, regardless of who that entity might be, agents will honor a direct request from a client.
No matter how spirited you are about improving your neighborhood’s value, you can’t do it alone. You need the help of your neighbors to make real change in your area, and that means you need to be willing to not just meet your neighbors but foster relationships with them.
Fortunately, you will likely find most of your neighbors amenable to positive change. When you work together, you will see property prices rise en masse, and you’ll all reap the rewards of a more valuable neighborhood as a group.
Buying a house can feel very overwhelming. If you break down the basic steps, though, you can get through the process without losing track of your goals. Below are the basic things you need to keep in mind when buying a house. If you can check them all off of your list, you will know that you’ve covered all your bases.
Get A Good Realtor
Having a solid real estate agent is the first thing you’ll need when buying a house. While your realtor is going to get paid for helping you buy a house, it’s always in his or her best interest to make sure that you are protected during the process. A good realtor will show you the right houses for your needs and help to walk you through the buying process.
Know Your Limits
It’s important to know what you can afford. When you go to a mortgage lender, they’re going to tell you much you can borrow – but that might be more than you want to spend on a house. Instead, do some research to figure out what kind of payments you can comfortably make while living the lifestyle that’s most important to you and to your family.
Get a Pre-Approved and Ready for a Mortgage
The last thing you want is to lose out on a great house because you couldn’t pull funding together at the last minute. Go ahead and start talking to lenders before you’ve bought a home to get pre-approved for a mortgage. While there will still be paperwork to do after you sign a contract, you’ll be able to avoid some worst-case scenarios with pre-approval. Don’t forget to get your down payment together during this step, as this significant amount of cash will be vital to the process of securing your loan.
Research Moving Companies
It’s a good idea to know what it’s going to cost you to move ahead of time. This is an easy cost to forget, so go ahead and take care of it ahead of time. You should also figure out whether or not you can actually reach your new home by truck, or if you’ll have to take a more exotic route to get your things to your home. Plus, some companies will give you a discount if you reserve a truck early enough, or if you bundle multiple services together (Suddath movers and a few others will do this).
Check Out the Neighborhood
Don’t forget to check out the neighborhood at different times of the day and night. You’ll get an idea of what life is like in the area, what your neighbors are like, and even what kind of traffic you should expect on your way home from work. These are the little things that have a huge impact on your quality of life in your new home.
Get an Inspection
Never move into a home without an inspection. Even if you’re buying a house as-is, you need to know what kind of flaws you’re going to be working with even if you know you have to do some renovations. Always make sure to work with an independent inspector even if the buyer offers to have an inspection done for you. This goes for pest control too. Make sure you’re not about to move into an infestation before you sign anything. Just make sure you go with pros, like our friends at Turner Pest, it’s easy to miss the early signs of an infestation. And missing the early signs could cost you thousands down the road.
All-in-all, it’s not rocket science. Be prepared, do your homework, and don’t cut corners. The more time you spend up front, the more at ease you’ll be throughout the entire process. So, get out there out start house hunting!