I have homeowners insurance and a mortgage. I live in San Francisco, with a small lot and no room for anything but the house and a smallish (25x40) back yard, in which I am not allowed to build due to fire ordinances.
Part of my policy is for “Coverage B - Separate Structures.” The insurance company says this is for outbuildings, such as a garage or shop or “she shed” and fencing. When I expressed the fact that I don’t have any of those things due to lack of space, he said it is a package thing and is always included regardless of the actual conditions of the home. So I am apparently paying for coverage for which I will never be able to make a claim.
Questions: is this standard in the industry? Are there any reputable insurance companies that don’t do this (i.e. where separate structure coverage is optional and is based on actual existence of separate structures)?