In this scenario, the policyholder L has a DP-1 (Dwelling Property 1) insurance policy with a Coverage A amount of $300,000. Following the severe storm, there are two covered losses:
1. Covered loss to the dwelling: $275,000
2. Covered loss to a detached swimming pool: $30,000
The DP-1 policy will typically cover the cost of repairs or replacement up to the Coverage A limit. In this case, the Coverage A limit is $300,000.
The policy will pay the lesser of the covered losses or the Coverage A limit. Therefore, the policy will pay $275,000 for the covered loss to the dwelling because it's lower than the Coverage A limit. The covered loss to the detached swimming pool is $30,000, which is also below the Coverage A limit.
So, the total amount that L's policy will pay is $275,000 for the covered loss to the dwelling.
The correct answer is C. $275,000.