What is the limit of insurance for Coverage B automatically provided under each dwelling form?

The limit of insurance for Coverage B, which pertains to other structures on a property, is automatically set at 10% of the Coverage A limit under each dwelling form. This coverage is designed to protect structures that are not attached to the main dwelling, such as detached garages, fences, and sheds.

The reason this limit is established is to ensure that homeowners have a baseline amount of coverage for these additional structures, recognizing their potential value while maintaining a balance with the dwelling's primary coverage. The specification of 10% allows for a reasonable and equitable distribution of coverage for both the main dwelling and its ancillary structures, which helps homeowners manage risks effectively.

Other percentage options, such as 20%, 5%, or 25%, either exceed or do not meet the standard set by dwelling forms, highlighting why 10% is the correct and widely accepted limit for Coverage B. This standardization within the insurance industry ensures consistency and clarity for policyholders.