Amy Lambert's home is insured for $85,000 and her detached garage is destroyed by a windstorm. She hopes to collect $11,850 under her homeowner's policy. What will happen?

Question

Quizplus · Accepted Answer

Coverage A applies to the actual dwelling, while Coverage B applies to other structures on the property, such as detached garages. However, the policy may have a limit on the coverage amount for other structures, which is often a percentage of the dwelling coverage amount. In this case, $11,850 may exceed the limit for Coverage B, resulting in a lower payout of $8,850.

Amy Lambert's Home Is Insured for $85,000 and Her Detached