You have an HO policy with the following limits: A = $50,000 (dwelling)
B = $5,000 (other structures)
C = $25,000 (personal property).
A tornado strikes your property. You lose your house, which is worth $40,000 at the time of the loss. You also lose an unattached shed worth $8,000, and personal property worth $30,000. You will collect:

Question

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The limit for the dwelling coverage (A) is $50,000, which is higher than the actual value of the house at the time of the loss ($40,000). Therefore, the maximum payout under this coverage is $40,000. The limit for other structures (B) is $5,000, which is not enough to cover the loss of the shed worth $8,000. Therefore, the maximum payout under this coverage is $5,000. The limit for personal property (C) is $25,000, which is lower than the actual value of the personal property lost ($30,000). Therefore, the maximum payout under this coverage is $25,000.

Overall, the maximum payout under this policy would be: 
$40,000 (dwelling) + $5,000 (other structures) + $25,000 (personal property) = $70,000.

Therefore, the answer is B) $70,000.

You Have an HO Policy with the Following Limits: a =