Should You Insure Your Shed or Outbuilding?

Brooke Williams -

From high-end power tools and bicycles to garden furniture and home gym equipment, the value of items stored in sheds and outbuildings often exceeds expectations. With garden spaces increasingly being repurposed as home offices, studios, and even additional living spaces, ensuring these structures and their contents are properly covered is more important than ever.

Key Takeaways:

  • Your home insurance may already cover sheds and outbuildings, but policy limits vary.
  • Buildings insurance typically covers the structure, while contents insurance covers stored items—subject to specific conditions.
  • If you use your shed for business purposes, you might need separate insurance.
  • High-value items such as bikes or expensive tools may need to be listed separately.
  • Proper security measures can lower premiums and help ensure valid claims.

Are Sheds Covered by Home Insurance?

Most standard home insurance policies provide some level of cover for sheds, garages, and other outbuildings. However, the extent of coverage differs significantly between providers, so checking the fine print is essential.

Buildings Insurance for Sheds

Your home’s buildings insurance generally includes permanent outbuildings, covering structural damage from:

  • Fire and smoke
  • Floods and storm damage
  • Theft or vandalism
  • Falling trees or branches
  • Subsidence (though this is less common)

It’s crucial to maintain your shed, as insurers may reject claims if damage results from neglect.

Contents Insurance for Sheds

Anything stored inside your shed may fall under your home’s contents insurance. This covers losses due to:

  • Theft or attempted theft
  • Fire or smoke damage
  • Storm and flood damage
  • Malicious damage or vandalism

However, insurers typically impose a cap on the total value of outbuilding contents, often ranging from £1,000 to £5,000. Any high-value items—like bicycles, expensive tools, or outdoor entertainment equipment—may need to be listed separately.

How Much Does Shed Insurance Cost?

The cost of insuring your shed and its contents varies depending on:

  • The value of the shed and stored items
  • The level of security in place
  • Your home insurance provider’s terms
  • The location of your property (higher-crime areas may increase premiums)

A combined buildings and contents insurance policy can start from around £130 per year, but adding optional extras like accidental damage or extended contents cover will increase this figure.

What Is and Isn’t Covered?

While home insurance can provide extensive protection for sheds and outbuildings, there are exclusions.

✅ Typically Covered:

  • Buildings insurance: Covers outbuildings, including garages, greenhouses, and summerhouses.
  • Contents insurance: Covers personal belongings inside the shed, subject to policy limits.
  • Damage caused by:
    • Storms and severe weather
    • Fire and smoke
    • Theft and vandalism
    • Flooding

❌ Not Usually Covered:

  • Sheds not on your property (e.g., an allotment shed).
  • Outbuildings used for commercial or rental purposes.
  • Items that aren’t properly secured (e.g., unlocked sheds).
  • Motor vehicles, including motorbikes and some bicycles.
  • Accidental damage, unless added as an optional extra.
  • Wear and tear, such as weather-related deterioration or rust.

If your shed is in poor condition or lacks proper security, claims may be denied.

Is My Bike Covered in the Shed?

Bicycles are covered under contents insurance, provided the shed is locked and meets the insurer’s security requirements. However, most policies impose a per-item limit, often around £500 to £2,000. If your bike exceeds this limit, consider:

  • Listing it separately on your policy.
  • Adding personal possessions cover to protect it while away from home.
  • Taking out specialist bike insurance, which often includes accidental damage and worldwide coverage.

How to Calculate the Value of Shed Contents

To ensure you have adequate cover, take an inventory of the items stored in your shed and estimate their replacement costs. Common high-value items include:

  • Power tools and gardening equipment
  • Bicycles and sporting gear
  • Outdoor furniture and BBQs
  • Home office setups (desk, electronics, etc.)
  • Gym equipment (weights, treadmill, etc.)
  • Hot tubs or other leisure accessories

Once you’ve tallied up the total value, compare it to your contents insurance policy’s outbuilding cover limit. If needed, request an increase from your insurer.

Does Shed Insurance Cover Greenhouses and Summer Houses?

Most home insurance policies include greenhouses, summerhouses, and similar structures under buildings insurance, provided they are:

  • Located within the property boundary.
  • Constructed from standard materials (non-standard materials may require special coverage).
  • Used for personal rather than business purposes.

If you use your summerhouse or garden office for business, separate insurance—such as small business insurance—may be required.

Can I Insure My Shed for Weather Damage?

Yes, storm damage to your shed’s structure is usually covered by buildings insurance. However:

  • Claims may be rejected if the shed was poorly maintained.
  • Roof damage is often assessed case-by-case.
  • Fences and gates are rarely covered under home insurance.

To increase your chances of a successful claim, keep your shed well-maintained and promptly repair any minor damage before bad weather strikes.

What Items Shouldn’t Be Stored in a Shed?

Even with insurance, some items are best kept inside your home due to higher theft risks or limited cover. These include:

  • Laptops and computers
  • Mobile phones and tablets
  • Musical instruments
  • Jewellery and watches
  • Valuable artwork or collectibles
  • High-end photographic equipment

Keeping valuable items in a locked home safe or secured room can help reduce the risk of loss.

Are Allotment Sheds Covered?

No—allotment sheds are not covered under standard home insurance policies because they are located off your property. However:

  • Personal possessions cover may extend protection to tools taken to an allotment.
  • Some allotment societies offer dedicated insurance for sheds and equipment.
  • Public liability insurance may be available in case someone is injured due to your allotment.

Using a Shed as an Office, Gym, or Bedroom: Are You Covered?

If you’re using your shed as a home office, gym, or additional living space, coverage depends on how it’s used:

  • Home office for remote work? Likely covered.
  • Business guests or client visits? Business insurance required.
  • Personal-use gym or yoga studio? Likely covered.
  • Rented-out accommodation? Needs landlord or specialist insurance.

For a shed conversion into a permanent living space, you may need:

  • Planning permission
  • Compliance with building regulations
  • Additional council tax considerations
  • Notification to your insurer (to avoid invalidating your policy)

How to Improve Shed Security and Reduce Insurance Costs

Taking steps to secure your shed can lower premiums and reduce the risk of theft. Consider:

  • Fitting a heavy-duty padlock and reinforced door hinges.
  • Installing an alarm system or smart security camera.
  • Using motion-sensor lights around the outbuilding.
  • Bolting high-value items together inside the shed.
  • Adding window locks or metal grilles to deter break-ins.

Insurers may offer discounts for sheds with enhanced security, so investing in these measures can be worthwhile.

Final Thoughts

While sheds and outbuildings are often covered under home insurance, limits and exclusions vary, making it essential to read the fine print. Whether you use your shed for storage, work, or leisure, ensuring you have the right level of protection can prevent financial headaches if the unexpected happens.

If in doubt, speak to your insurer to clarify your coverage options and ensure your shed is adequately protected.