What is true about Coverage B under DP-2 and DP-3?

Coverage B under the Dwelling Policy forms DP-2 and DP-3 is recognized as providing additional insurance specifically for other structures that are not attached to the dwelling. This coverage is designed to offer protection for structures such as detached garages, sheds, fences, and similar buildings, which adds value to the overall policy.

When a policyholder maintains Coverage B, it allows them to have a separate limit of insurance dedicated to these outbuildings, rather than reducing the limit of Coverage A, which pertains to the dwelling itself. As such, even if a claim is made against Coverage B, it does not diminish the amount of insurance available for Coverage A.

In contrast, the other options do not accurately reflect the nature of Coverage B. Coverage B does not reduce the Coverage A limit; it functions as a supplemental limit. Additionally, it indeed covers outbuildings, and is not limited to only structures that are attached to the dwelling. This distinction emphasizes the importance of understanding the overarching benefits of separate coverage provisions in homeowners' insurance policies.