How shed and outbuilding insurance works

Is there such a thing as outbuildings insurance, garden office insurance or garden shed insurance? Not really, it’s a bit more complicated than that.

 Buildings insurance will usually cover your shed, garage or other outbuilding (roof, walls, fixed fittings) against damage, as they lie within your home’s boundaries.

Contents insurance will usually cover the items inside these outbuildings. But there are often exclusions and options, such as accidental damage, some of which you can read about below.

And because every policy is different, it’s important to check exactly what yours covers. Especially if you store office or gym equipment, expensive mowers, tools and bicycles, as these may need to be insured individually. 

Before you insure your outbuilding, check whether it fits the definition: the one we use is "Permanent and immovable structures that are within the boundaries of the address shown on your schedule which are not lived in and are used solely for domestic and/or clerical business purposes. For example, sheds, summerhouses and greenhouses."    

So thoroughly check your policy.

Permanent and temporary structures

If you’re wondering whether your outbuilding is a permanent structure, consider whether it has a foundation or base, like a shed. If it doesn’t, or is open-sided, it may be considered a temporary structure by your insurance company. It’s always best to check with them to make sure you have enough cover.

Work out what it’s all worth

It’s worth taking the time to create a list of all the items – power tools, bikes, gym equipment, garden furniture – stored in your shed, garage, workshop or outbuilding. And what they’d cost to replace today, new.

Then, work out a realistic replacement or rebuild cost for your shed or outbuilding. Think about its size, the materials required and whether it would need electrics.

Insure high value items separately

Once you know what you have, and what it’s all worth, check your building and contents insurance to see if you have enough cover. Depending on the level of cover your policy provides for outbuildings, you might need to consider insuring high value items separately, such as expensive pedal cycles.

If in doubt, ask your insurer what they’re prepared to cover and how much they pay out for individual items.

Check your policy’s limits and exclusions

Because our sheds and outbuildings now serve so many different purposes, it can get a bit complicated working out what is – and isn’t – covered by your policy.

Things to check are:

• Caps on your contents – as mentioned above, check what the cap might be on the value of individual items covered.
• Common exclusions – some items, such as business stock, generally aren’t covered.
• Conditions for theft payouts – unless the outbuilding is in good condition and locked, and there’s evidence of forced entry, you may not be covered.

Outbuildings are regularly targeted by thieves because they know that there are often valuable items stored inside.

To make your shed or garage less attractive to criminals and to ensure it complies with your insurance policy’s requirements, there are some practical steps you can take to secure it:

• Make sure the outbuilding is well maintained and locked securely, using BSI-standard locks. 
• Consider concealed fixings, for example on security bolts and hinges, and security measures like lights and CCTV.
• Store valuables like power tools out of sight or in a fixed internal lockbox.
• Consider adding a ground or wall anchor to secure your bike to something immovable.
• Keep receipts and photos of valuables to support any future claims. 

There are lots more great Aviva tips on making your shed burglar-proof, here.

If you’re thinking about putting up a new outbuilding or changing how you use an existing one (perhaps from a hobby space to a business one), it’s important to keep your insurance company in the loop.

To make sure you can insure the shed or outbuilding properly when it’s completed, it’s a good idea to keep all invoices, receipts and certificates for evidence of build quality and value.

Aviva Signature buildings insurance typically covers most permanent structures in your garden including sheds, summerhouses and greenhouses. As long as you use them for domestic or clerical business purposes – which means computer work, emails, telephone calls and administration – they'll be covered.

Aviva Signature contents insurance covers the usual things you might keep in your shed, such as tools and mowers, as well as home office equipment, subject to policy terms and limits. 

Practical extras include cover for replacement external door and safe locks if your keys are lost or stolen.