E&O Risk Management Tip: Don't Overlook Outbuildings

When insuring property, it is easy to focus on the primary structure and overlook detached buildings such as sheds, garages, barns, workshops, and storage buildings. We continue to see claims involving outbuildings that were never scheduled, not properly valued, or not discussed when a new property was added to an existing policy.

• Detached structures should not be overlooked during the application, renewal, or property acquisition process.
• Asking whether a location contains any outbuildings and documenting the insured's response can help identify uninsured structures, inadequate limits, or valuation issues before a loss occurs.
• This is particularly important when adding properties to existing policies, as the focus is often placed on the newly acquired building while other structures at the location may go unaddressed.