Dwelling PolicyQuestion 120 of 215
A dwelling is insured for $300,000 of Coverage A under a DP-3 with no endorsement modifying Coverage B. What is the standard amount of Coverage B (Other Structures) provided?
a.$60,000
b.$15,000
c.$300,000
d.$30,000
Explanation
Under the standard ISO Dwelling Property forms, Coverage B (Other Structures) is automatically provided at 10% of the Coverage A limit. With $300,000 of Coverage A, Coverage B is $30,000. The 10% limit is additional insurance on DP-2 and DP-3, while on DP-1 it is included within the Coverage A limit unless an option is chosen.
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Related questions on this topic
- Which ISO Dwelling Property form provides open-perils coverage on the dwelling structure but only named-perils coverage on personal property?
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