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 B: Other structures covers structures that are not attached to the main dwelling, such as detached garages. The coverage limit for this type of coverage is typically a percentage of the amount of insurance on the main dwelling. In this case, if the limit for Coverage B is 10% of the $85,000 insurance on Amy's home, it would be $8,500. Therefore, she would only be able to receive up to $8,500 for the damage to her garage, not the $11,850 she hopes to collect.

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