"an insured has an $80,000 dwelling policy with a $500 deductible. in addition to the house, the property includes a detached garage, storage shed, and an artist's studio. during a thunderstorm, the garage and storage shed are damaged by lightning. the loss is $3,000 to the garage and $1,000 to the shed. what amount is covered by the policy? "

The amount that is needed to be covered by the policy is $3,500

Explanation:

Coverage B - Other kind of structures offer coverage for the real property which is to be located on the desired location and need to be separated from the dwelling through clear space.

Coverage A- upto 10%

So, in the situation, $8,000 is involved for other structures. Lightning is covered under the peril so that the policy will pay an amount of $3,500 (Which is $4,000 [$3,000 + $1,000] - $500)