What factor limits Farm Coverage B to 10%?

The correct response is related to how coverage limits are typically structured in farm insurance policies. Specifically, Coverage B refers to other structures on a farm property, such as barns or sheds, which are detached from the primary dwelling. In farm insurance, Coverage B is commonly limited to a specific percentage of the Coverage A limit, which provides coverage for the main dwelling.

In this context, the 10% limit for Coverage B is a reflection of the overall limits set by the primary dwelling's coverage. If Coverage A has a limit of $100,000, then Coverage B is limited to $10,000. This system ensures that the coverage for detached structures is proportionate to the value and coverage of the main insured property, aligning with the standard practice in the insurance industry where associated coverages are derived from a core limit. Thus, the relationship between Coverage A and Coverage B directly accounts for the 10% limitation imposed.