Louisiana P&C Adjuster Practice Exam

How much of Cheyenne's losses will be covered under Coverage B - Other Structures?

1. Only the fence will be covered

2. Total losses will not be covered at all

3. Coverage B will cover up to the policy limit of $9,000

4. The garage and fence will be fully covered

The correct answer is: Coverage B will cover up to the policy limit of $9,000

Coverage B - Other Structures typically provides protection for structures on the property that are not attached to the primary dwelling, such as garages, fences, and sheds. The correct answer states that Coverage B will cover up to the policy limit of $9,000, which indicates that the amount covered is contingent upon the specifics of the insurance policy, including deductibles and coverage limits that have been agreed upon. In this scenario, it’s important to note that coverage is generally subject to a limit specified in the policy. If the policy states a maximum limit of $9,000 for Coverage B, that amount would be the maximum payout for all eligible other structures combined, including the garage and the fence. The other choices suggest varying scopes of coverage. One indicates that only the fence would be covered, which is incorrect because if the garage is also insured under Coverage B, it would be included as well. Another option claims that total losses will not be covered at all, which contradicts the typical provisions of Coverage B where losses to other structures are indeed usually covered up to the designated limit. Lastly, stating that both the garage and fence will be fully covered does not take into account the policy limit of $9,000, which would restrict the total recovery if