Which option describes the coverage for out structures in a HO-2 policy?

In a HO-2 policy, which is a type of homeowners insurance known as a broad form policy, the coverage for other structures is specifically designed to provide financial protection for detached buildings on the property. This includes items like garages, sheds, and fences.

The correct response indicates that the HO-2 policy provides coverage for other structures amounting to 10% of the dwelling limit. This means if the main home has a dwelling coverage limit of, for example, $300,000, the policy would extend up to $30,000 for structures separate from the dwelling. This coverage is crucial because it ensures that homeowners are protected not only for their primary residence but also for any additional structures they may own on their property.

The distinction of 10% comes from standard limits defined in the policy, and understanding this percentage helps homeowners recognize how much protection they have for other structures in relation to their overall home insurance coverage.