Which coverage option must not exceed a specified percentage amount when extended to private structures?

When considering coverage options in general insurance, detached private structures coverage typically applies to buildings not attached to the main dwelling, such as sheds and garages. This type of coverage often has specific limitations to prevent over-insurance or excessive payouts. Insurers frequently stipulate that coverage for these structures must not exceed a certain percentage of the dwelling coverage.

This percentage ensures that the coverage remains proportional to the main property, maintaining a balance in how the overall policy addresses risk for various structures on the property. The limitation is essential for both the insurer's risk management and to provide a clear framework for claim payouts.

In contrast, other coverage types like liability coverage, personal property coverage, and dwelling coverage have their own distinct structures and limitations but do not typically involve the same percentage cap specifically for detached private structures. Each of these coverages serves different purposes and is governed by different factors relative to loss exposure and the nature of claims.