What percentage of Coverage A is used to calculate Coverage B?

The correct percentage used to calculate Coverage B is indeed a key detail in homeowners insurance policies, specifically how it relates to Coverage A, which typically covers the dwelling itself. Coverage B protects other structures on the property, such as detached garages, sheds, or fences.

In most standard homeowners insurance policies, Coverage B is typically a percentage of Coverage A. The standard percentage used for calculating Coverage B is 10% of the amount of Coverage A. This means if a homeowner has a Coverage A limit of $200,000, the Coverage B limit for other structures would automatically be set at $20,000.

Understanding this relationship is crucial for homeowners to ensure that they have adequate coverage not just for their dwelling, but also for separate structures on their property. Knowing how these percentages work can help policyholders make informed decisions regarding their coverage limits and ensure they are adequately protected.