What is the allowance for coverage B (other structures) expressed as a percentage of coverage A in a homeowners policy?

In a standard homeowners insurance policy, Coverage B, which pertains to other structures, is typically set at 10% of the coverage amount for the dwelling itself (Coverage A). This percentage is established to provide adequate protection for detached structures on the property, such as garages, sheds, fences, and other similar buildings that are not attached to the main dwelling.

The rationale behind this allocation is to ensure that property owners have sufficient coverage for these additional structures without requiring a separate policy or additional endorsement, while still primarily focusing on the dwelling coverage. The 10% standard is a common practice in the industry, making it the correct choice in this context.

Other percentages like 5%, 15%, or 20% do not align with the standard coverage limits recognized in typical homeowners insurance policies, which is why they are not the correct choices.