The Insurance Blind Spot Most Arizona Homeowners Forget: Detached Structures

Sheds, casitas, and detached garages are common in Arizona, but are they insured the way you think? Learn how to make sure your detached structures are covered.

The Insurance Blind Spot Most Arizona Homeowners Forget: Detached Structures

In Arizona, it’s common to have more than just the main home on your property. Think:
• A detached garage
• A backyard shed
• A guest casita
• Even a pergola or gazebo

These structures add value and functionality, but here’s the problem: many homeowners don’t realize they may not be fully covered under their standard policy.

How Coverage Usually Works

Most policies automatically extend some coverage (often 10% of your dwelling limit) to detached structures. For example, if your home is insured for $400,000, your shed or garage may only have $40,000 of coverage.

That sounds like a lot, until you add up what’s inside: tools, bikes, gym equipment, or even furnishings in a casita.

Where People Get Caught Off Guard
• Guest houses or casitas being used as rentals may need separate coverage.
• Home businesses operating out of a detached structure usually aren’t covered.
• Luxury garages with lifts or high-value equipment often exceed limits.

What To Do
• Take inventory of what’s stored in or built onto detached structures.
• Ask your agent if your limits are high enough.
• Add endorsements or separate policies if needed.

Bottom Line:
Don’t assume your backyard additions are protected just like your house. Detached structures are one of the most overlooked insurance blind spots in Arizona.