Millions of Americans Are Underinsured for Their Secondary Structures—Are You?
Would You Be Covered If Your Shed, Garage, or Guesthouse Were Destroyed?
If you have a detached garage, shed, or guesthouse, you might assume your homeowners insurance fully covers it. But here’s the shocking truth—millions of homeowners are underinsured for these secondary structures, leaving them at risk for huge out-of-pocket costs after a disaster.
At Trailstone Insurance, we’ve helped countless homeowners avoid this costly mistake by reviewing policies and ensuring full replacement coverage.
✔ Think your policy covers everything?
✔ Not sure how much your secondary structure is really worth?
✔ Want to avoid unexpected repair costs?
Let’s break down why so many homeowners are underinsured—and what you can do to fix it.
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Why Are Secondary Structures Often Underinsured?
✔ Outdated valuations – Insurance policies often don’t account for rising material and labor costs.
✔ Standard policy limits – Many policies only cover 10% of the home’s insured value for detached structures, which may not be enough.
✔ Lack of awareness – Many homeowners don’t realize they need to update their policy when adding new structures or making improvements.
🚨 A recent report found that 50% of homeowners don’t know how much it would cost to rebuild their secondary structures.
That means half of American homeowners could be left paying thousands out of pocket if disaster strikes.
Real-Life Examples of Underinsured Homeowners
1. The Detached Garage That Was Worth More Than Expected
🚗 Tiffany had a detached garage built in 2005 for $15,000.
After a major storm destroyed it last year, she assumed insurance would cover the full cost to rebuild.
But here’s what happened:
✔ Due to inflation and rising labor costs, rebuilding the garage now costs $30,000.
✔ Her policy only covered $10,000.
✔ She had to pay $20,000 out of pocket to rebuild.
🚨 Moral of the story? If she had updated her policy, she could have avoided this massive bill.
2. The Guesthouse Fire That Cost Thousands
🏡 Tom built a guesthouse for visiting family members.
Unfortunately, a fire destroyed it last summer, and when he filed an insurance claim, he got a rude awakening.
✔ His coverage limit was much lower than the replacement cost.
✔ He was forced to pay thousands of dollars out of pocket to rebuild.
🚨 Why did this happen? Because insurance policies don’t automatically adjust when you add or upgrade structures—you have to manually update your coverage.
How to Make Sure Your Secondary Structures Are Fully Covered
Don’t wait until disaster strikes to find out you’re underinsured. Here are three simple steps to protect yourself:
1. Review Your Policy Limits
✔ Look at your current policy and see how much coverage is allocated for detached structures.
✔ Many policies only cover 10% of your home’s value, which may not be enough.
🔹 Example: If your home is insured for $400,000, you may only have $40,000 for all detached structures—even if replacing them costs much more.
🚨 What to do: If the limit seems low, it’s time to update your coverage.
2. Talk to an Insurance Expert
✔ A professional can assess your policy and help adjust your coverage based on today’s rebuilding costs.
✔ If you’ve added or upgraded any structures, an agent can ensure they’re fully covered.
💡 Trailstone recently helped a client discover they were underinsured by $20,000—after a quick consultation, we adjusted their policy to guarantee full replacement coverage.
3. Get a Professional Appraisal
✔ Hiring a licensed appraiser can give you a realistic estimate of how much your secondary structures are worth.
✔ Many insurance companies will adjust your policy based on appraisal values, ensuring you have the right coverage.
🔹 Example: Mary hired an appraiser who found that her backyard studio was worth twice what she originally thought. Because of this, she increased her policy limits and avoided being underinsured.
🚨 What to do: If you’re unsure about your structure’s value, an appraisal can give you the accurate numbers you need.
Now What? Take Action Today!
If you have a detached structure on your property—a shed, detached garage, guesthouse, or ADU—don’t assume it’s fully covered.
✔ Review your policy and check your secondary structure limits.
✔ Contact Trailstone Insurance for a free consultation to see if you’re underinsured.
✔ Consider an appraisal to ensure your coverage reflects today’s rebuilding costs.
🚀 Don’t wait until you’re stuck with a massive repair bill—take action now!
📞 Call Trailstone today for a free policy review!
🔗 Get a Free Quote Now
Final Thoughts
Homeowners insurance should protect all of your property—not just your main house.
If you’re not sure whether your detached structures are covered adequately, it’s time to review your policy and make adjustments.
💡 At Trailstone Insurance, we make sure you have the right coverage so you’re never caught off guard.
📌 Call us today or visit our website for a free consultation!
🚨 Let’s make sure your home—and everything on your property—is fully protected.