Brian purchased an unendorsed Homeowners 3 policy. Under the policy, B

Brian purchased an unendorsed Homeowners 3 policy. Under the policy, Brian’s detached garage is also covered. Which of the following statements regarding coverage on the garage is true?

A) The garage is covered on a named-perils basis.
B) Any losses to the garage are settled on an actual cash value basis.
C) The cost of removing debris is included in the policy limit on the garage, but if the damage and cost of removing debris exceed the limit, an additional five percent of the policy limit is available.
D) The garage is covered under the dwelling coverage, Part A.

ANSWER

Answer: C