What percentage limit applies to other structures under a dwelling policy?

The correct percentage limit for other structures under a dwelling policy is 10%. This limit is essential to understand as it specifies how much coverage is available for structures on the property that are not attached to the dwelling itself, such as garages, sheds, or fences.

Under typical dwelling policies, this coverage ensures that if these other structures are damaged or destroyed due to a covered peril, the insured can claim up to 10% of the dwelling coverage amount. For example, if a dwelling policy has a coverage limit of $100,000, the limit for damages to other structures would be $10,000.

This understanding is crucial for policyholders to ensure their property is adequately insured, particularly if they have valuable detached structures. Knowing this limit helps with financial planning and risk management concerning potential losses to those structures.