For New Jersey homeowners fortunate enough to live along a body of water or enjoy a custom swimming pool, no part of that experience brings more satisfaction than looking out over a private dock, boathouse, poolside patio or cabana. While these signifiers of the good life make for an enjoyable view, however, the view often gets murky when it comes to home insurance and so-called "Other Structures".
Waterfront installations (docks, bulkheads, wharves, piers, seawalls, bridges) and swimming pool constructions fall under the category of Other Structures on a standard homeowners policy, and can be covered as an option at an added cost of anywhere from 2 to 10 percent of the building value in most cases.
Under that standard arrangement, the same protections listed in your dwelling coverage — fire, wind, lightning strikes, falling trees, etc. — apply to those waterfront structures as well. But flood damage (storm surge, waves, tidal overflow) and other water damage (including wind-driven rain/hail) are not written into these plans, even though docks and other waterfront structures exist on the literal front lines of such potential disasters.
Even the National Flood Insurance Program (NFIP) excludes coverage for these items that sit at a remove from the main residential dwelling of a property. In addition, the collapse of a dock or other structure into a body of water is not covered — nor is the prospect of serious damage caused by the often stressful processes of freezing and thawing. Add to that the fact that swimming pools are among the features of a home that are most in need of liability insurance coverage, and it's easy to think that the attributes that represent a "dream home" can be something of a nightmare when your home insurance policy doesn't keep pace.
"Other Structures" and Home Insurance
Insurance policies generally define "Other Structures" as anything built on a property and "set apart from the dwelling by clear space" — a broad categorization that encompasses everything from guesthouses, vehicle storage (detached garages, boathouses), equipment storage (sheds, barns), and garden accents (greenhouses, gazebos, pergolas), to fences, driveways, awnings, and even curbside mailboxes. Included in this category are docks, piers, pools, and other recreational features — the "parts of your property where life is lived to the fullest," in the words of independent insurance agent Frank Jones.
A partner with Mints Insurance in Millville, Jones maintains that “it’s important to establish that docks, etc. are "on the premises" of your residence…check your existing policy to see the extent of this coverage.”
The A-B-C-Ds of Coverage for What's Outside Your Home
A standard homeowners policy works on several alphabetically designated levels of coverage. These are referred to as Coverage A, Coverage B, Coverage C and Coverage D - as follows:
New Jersey Homeowners Insurance Coverage Levels
- Coverage A, also knows as Dwelling Coverage, pertains to the core part of a property — the primary residential building, or dwelling — and would otherwise include only features that are directly connected to the residence, such as an attached garage or deck. Guest houses that exist as separate structures do not fall under Coverage A.
- Coverage B includes all of the Other Structures detailed above, with most homeowners insurance policies extending about 10 percent of their main residence coverage to these structures. Note that Coverage B does not cover the land that a structure stands on, nor does it cover structures used for business purposes (boat rentals, landscaping/ agricultural, etc.). Guest houses are covered here, but only if they are not being rented out to other occupants — and as mentioned previously, floods and other wind/water damage are not part of the package of protections under this category (nor are damages caused by insect/ animal infestations).
- Coverage C is optional personal property coverage added to a homeowners insurance policy, applicable to specific valued items, such as a boat that is docked and/or stored on your property. The option is recommended for situations in which the item is at risk of being stolen, vandalized, damaged or destroyed — as well as when the item carries a risk of causing injury or damage to another person or property. Coverage C plans are generally calculated as 10 percent of a policy's Coverage A amount, with a limit of 50 percent.
- Coverage D is "loss of use" coverage — typically put into effect for living expenses that are incurred when a residence is rendered temporarily uninhabitable. While this doesn't mean you'll be moving into your detached garage, gazebo, or mailbox in case of an emergency, the same principle can apply when a dock or pier is momentarily out of commission, and the situation necessitates the owner finding temporary slip space or storage for a watercraft.
Your Trusted Choice Agent Can Float Some Ideas to Insure Your Dock, Pool or Boat Lift
Insuring your pool, dock, or waterfront/ recreational features doesn't have to mean being locked into a standard arrangement for Other Structures. As Frank Jones explains, homeowners have the option of increasing the Coverage B amount built into their existing policy.
"Since Coverage B is just 10% of homeowners policy coverage — a $250,000 policy would only offer $25,000 worth of coverage to a dock — you can increase total coverage if needed.”
In order to better protect specific items in a property's other structures (boats, marine/ recreational gear, outdoor furniture), policyholders can purchase "endorsements" (options or riders that can raise the coverage limit for some categories of items) — or "floaters" (dedicated coverage options for specific items that are more expensive, but recommended if the item is a valuable piece of property stored outside of the main residence).
Increase the safety of your swimming pool or other waterfront recreation feature with common-sense precautions and preventive measures:
- Properly install secure perimeter fencing and railings
- Invest in locked gates and security alarm systems
- Keep swim floater vests and other approved safety equipment on hand for the use of your guests
- Employ pool safety covers when not in use
- Practice safe storage of pool chemicals and other potentially hazardous products
- Keep children under supervision at all times
- Discourage the consumption of alcoholic beverages around pool and dock
Most important of all, consult your Trusted Choice independent insurance agent to discuss all your options when it comes to these premium features of your property — learn about how a home's exterior structures can be made safer, more environmentally friendly, more secure — in ways that enhance both your coverage and enjoyment of your home.