Coverage A is $250,000. One fire destroys a detached garage costing $19,000 to rebuild and a shed costing $8,000. Coverage B on an unendorsed form pays:
Explanation
Coverage B is capped at 10% of Coverage A, so 0.10 x $250,000 = $25,000 is the most available, and that single limit covers every other structure on the premises rather than one per building. The $27,000 answer pays the whole loss and ignores the cap. The garage-only answer wrongly treats the limit as applying to one structure at a time, and 5% is not the other-structures percentage.
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