Dwelling PolicyQuestion 78 of 158
Under a DP-3 written with $400,000 Coverage A, what is the automatic limit available for Coverage B (Other Structures) such as a detached garage?
a.$20,000
b.$40,000
c.$80,000
d.$100,000
Explanation
Coverage B (Other Structures) is automatically provided at 10% of Coverage A. 10% of $400,000 = $40,000. Under DP-2 and DP-3 this is additional insurance, meaning it does not reduce the Coverage A limit. The insured can buy a higher Coverage B limit by endorsement if needed.
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