Florida Insurance Licensing Practice Exam

Under a dwelling policy, the coverage limit for other structures, such as a shed, is typically a percentage of the coverage limit for the main dwelling. In this case, the coverage limit for other structures would be 10% of $40,000, which is $4000. Therefore, the owner can expect to receive $4000 for the destroyed shed, as this is the maximum coverage for other structures under the dwelling policy. Option A is incorrect because it suggests full replacement cost, which is usually only offered for the main dwelling. Option C is incorrect because while some sheds may not be covered, the owner in this scenario has a dwelling policy which does provide some coverage for other structures. Option D is incorrect because it also overestimates the coverage for the shed, as it would only receive the actual cash value at the time of loss which may be less than the $4500 value.