Which statement about Coverage B - Other Structures is NOT true?

Coverage B – Other Structures is designed to protect structures that are not attached to the main dwelling, such as garages, sheds, and fences. It's important to clarify that this coverage is automatically included in most homeowners policy forms, particularly in standard HO forms like the HO-2 and HO-3.

The statement regarding Coverage B being added by endorsement to a homeowners policy is not accurate because it is typically included by default in the coverage, especially in HO-3 and similar policies. If someone holds a HO-4 policy, which is typically for renters and does not provide coverage for the building itself, Coverage B effectively does not apply, underscoring its foundational inclusion in policies aimed at homeowners.

Overall, Coverage B generally provides a standard percentage of Coverage A, specifically 10%, and does not cover land, which aligns with the fundamental principles of property insurance regarding structures. Therefore, the misunderstanding likely stems from assuming Coverage B is an optional endorsement rather than a standard part of certain homeowners policies.