Should I insure an outbuilding?

Question

I am getting close to closing on my first rental property! It has a small shed in the back yard.  I was wondering if I should insure this or not.

Lee Smith · Answer

Unless it's livable don't bother... Most sheds can be purchased for less than $1000.00. I am not sure what your deductible is, but would you really want to make a claim on it regardless? I keep insurance for disaster scenarios.. I don't make claims unless it's a catastrophe..

Ken Cooper · Answer

Thanks @Craig Brouillette i never would have thought of insuring a fence.

Ken Cooper · Answer

@ Kyle  Atans I don't mind.  Indianapolis.

Kalo (Kyle) Atanasoff · Answer

What state and city if you don't mind sherring ?

Ken Cooper · Answer

Thanks for the input.

@Lee Smith no it is not livable, and I probably would not want to make a claim on it.

@Kimberly T. it is not metal, it is wood, one of those that looks like a barn. It has a foundation, but it is small.  Just storage.

I think I will leave it off of the insurance.

Thanks,

Ken

Kimberly T. · Answer

Are you talking about a little metal shed you can buy for a few hundred dollars and build yourself, or are you talking about an actual structure with a foundation (a structure you'd have to get a permit to build)?  If it's one of those cheap metal ones, then no, don't insure it.  If it's an actual structure, then talk to your insurance broker/company and see if they include something like that in your policy.  We own 2 fourplexes in AZ, and each fourplex has a small structure in the back (separate from the residential structure) that includes a small storage room for each unit, and the laundry room with the coin-op machines.  Our insurance covers those structures... I don't think it significantly affected our premium.

Should I insure an outbuilding?

Most Popular Reply