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By Sara Anglin - State Farm Insurance Agent
Insuring a Detached Garage or Workshop in Nashville Isn't as Simple as You'd Think > Quick Answer: Detached garages and workshops are typically covered ...
Quick Answer: Detached garages and workshops are typically covered under your homeowners policy's Coverage B (usually 10% of dwelling coverage), but this often falls short for upgraded structures or those filled with expensive equipment. You can increase this coverage through your existing policy—a separate policy is rarely needed unless the building is on different land or used commercially.
A detached garage or workshop on your Nashville property is typically covered under your homeowners policy — but only up to a percentage of your dwelling coverage, and that default amount often falls short for structures that have been upgraded, converted, or filled with expensive tools and equipment. Detached structure coverage is the portion of a homeowners insurance policy (often called Coverage B) that protects buildings on your property not physically attached to your main home, including garages, workshops, sheds, and gazebos. If you've invested in a serious workspace or a standalone garage in neighborhoods like Sylvan Park, East Nashville, or Donelson, understanding how Coverage B actually works could save you from a painful gap when you file a claim.
Most homeowners policies set Coverage B at around 10% of your dwelling coverage amount. If your home is insured for $400,000, your detached structures share a pool of roughly $40,000. That sounds reasonable — until you consider what Nashville homeowners are actually building.
A detached two-car garage with insulated walls, electrical, and a concrete slab can easily cost $50,000–$80,000 or more to rebuild in 2026, especially with Middle Tennessee labor and material costs. A fully wired woodworking shop or converted studio space pushes that number even higher.
The gap between your default Coverage B limit and actual replacement cost is where problems show up. You can usually increase your Coverage B percentage, but you have to ask for it — it won't adjust on its own just because you added a structure.
In most cases, no. Your homeowners policy covers detached structures on the same property through Coverage B without requiring a standalone policy. A separate policy typically only comes into play when:
For the majority of Nashville homeowners with a garage or workshop in their backyard, an adjustment to your existing policy handles it. We help Nashville homeowners and property investors work through these decisions regularly, and the answer almost always starts with reviewing what your current Coverage B limit actually is versus what rebuilding would cost.
Coverage B covers the structure itself — walls, roof, foundation, wiring. It does not cover what's inside. Your personal property (Coverage C) handles tools, equipment, and belongings stored in a detached building, but there are limits that catch people off guard.
A few things to think through:
Take a walk through your detached building and add up what's actually in there. Many people are surprised by the total.
Nashville's short-term rental landscape has pushed many homeowners to convert detached buildings into guest suites or accessory dwelling units. If you're renting out a detached structure — whether through Airbnb, VRBO, or a long-term lease — your standard homeowners policy almost certainly doesn't cover it the way you need.
Rental use changes the liability exposure and the property risk. A guest injured in your converted garage apartment creates a very different insurance scenario than a family member using the same space. You'll likely need:
Skipping this step doesn't just leave you underinsured — it can result in a denied claim entirely.
Detached garages and workshops tend to be more vulnerable to storm damage than main homes. They're often built with lighter materials, may lack the same wind resistance, and sit exposed without the benefit of surrounding structure. During Nashville's spring and summer storm seasons — and 2026 has already brought its share of severe weather across Davidson County — a detached metal workshop or older wooden garage can sustain damage that your main house avoids entirely.
Your deductible applies per claim, not per structure. Wind and hail deductibles in Tennessee are sometimes percentage-based rather than flat-dollar, which means the out-of-pocket cost on a detached structure claim can be higher than expected.
Pull up your declarations page and look for the Coverage B line. Compare that number to what it would actually cost to rebuild your detached garage or workshop from scratch in today's Nashville market. If there's a gap — and for many homeowners there is — a conversation about adjusting that limit or adding an endorsement is straightforward and usually affordable.
Your detached building probably gets used every single day. Making sure it's properly covered shouldn't be the thing you get around to later.