PLGeorgiamedium
On a Georgia HO-3 with $300,000 of Coverage A on the dwelling, what is the default Coverage B (Other Structures) limit if no special endorsement is purchased?
A$15,000 (5% of Coverage A)
$30,000 (10% of Coverage A)
C$60,000 (20% of Coverage A)
D$150,000 (50% of Coverage A)
Why this is the answer
On a standard Georgia HO-3, Coverage B (Other Structures) — detached garages, sheds, fences, and similar — defaults to 10 percent of the Coverage A dwelling limit. With $300,000 Coverage A, that yields $30,000 of Coverage B. The insured may purchase an endorsement to increase Coverage B if the value of detached structures warrants it. Coverage C (personal property) defaults to 50 percent and Coverage D (loss of use) is commonly 20–30 percent of Coverage A.
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