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The correct answer indicates that the maximum claim for detached private structures in a seasonal residence policy is determined in proportion to the value of all insured structures. This approach aligns with the principle of indemnity in property insurance, which ensures that the insured is compensated for their loss up to the value of the property without profiting from the claim.

In practice, when a policyholder has multiple insured properties, the coverage limits for detached private structures are calculated by considering the total insured value. This means that if a seasonal residence policy covers a home and several outbuildings or other structures, the limit applicable to any one of these detached private structures will reflect their relative value compared to the overall insured value. This method maintains fairness and consistency in determining payouts.

The other methods listed do not typically apply to the determination of claims for detached private structures in seasonal residence policies. A fixed amount would not take into account the proportional values of insured properties, while reliance on state regulations could vary significantly by jurisdiction and does not specifically dictate the amount payable under a private insurance contract. Market value at the time of loss may also be irrelevant, as the insured value is typically based on what was originally insured rather than a fluctuating market value, which could lead to discrepancies and unfair compensation scenarios