Brandi thought it quite funny to have a decorative outhouse put on her property as a conversation piece- This structure is covered under Coverage A: Dwelling on her home owners policy.

Property insurance protects the structure of your home (dwelling coverage) and your belongings (personal property coverage). 
Personal liability coverage protects you if you're legally responsible for damage to someone's property, or if you accidentally injure someone whether you're at home or away from it.