What percentage of Coverage A is allocated for coverage in a four family dwelling under other structures?

In a homeowners insurance policy, Coverage A generally pertains to the dwelling itself, which includes the structure and any attached structures such as a garage. When considering other structures, the policy typically allocates a percentage of the total Coverage A limit to cover structures that are not attached to the main dwelling, such as sheds, fences, or detached garages.

For a four-family dwelling specifically, the standard allocation for Coverage A to other structures is set at 10% of the total Coverage A limit. This means that if the coverage for the dwelling is $200,000, the coverage for other structures would be $20,000.

Choosing 5% as the allocation for other structures is not aligned with standard underwriting guidelines. Therefore, the percentage generally used in homeowners policies for a four-family dwelling would be 10%. This allocation ensures that there is sufficient coverage for significant detached structures while still focusing primarily on protecting the main dwelling.

Understanding this standard percentage is crucial for adequately advising clients on their coverage needs in multifamily situations, ensuring they are aware of what is included under their policy.