North Carolina Adjuster Practice Exam

Which of the following could be covered by a homeowners policy?

1. A large home currently under construction

2. Personal property stored in a garage

3. Temporary dwelling while the house is being rebuilt

4. A home used exclusively for rental purposes

The correct answer is: A large home currently under construction

A homeowners policy typically provides coverage for a range of risks associated with residential properties. In the context of this question, a large home currently under construction can be covered under certain homeowners policies, provided the policy includes provisions for homes being built. Most standard homeowners insurance policies offer provisions for new construction, as they can typically cover the structure itself, provided the homeowner is the one undertaking the construction and they intend to use the property as their primary residence once completed. It is important to note that while homeowners insurance generally covers the structure, personal property, and liability, there may be limitations or exclusions for properties under construction. However, in cases where the homeowner intends to live in the home once construction is completed, many insurance companies will extend coverage to construction sites to protect against perils like fire or theft. In contrast, personal property stored in a garage may or may not be covered depending on specifics of the policy regarding off-premises personal property. A temporary dwelling while the house is being rebuilt often falls under different types of coverage, such as "additional living expenses," and may not be directly covered under a standard homeowners policy. Lastly, a home used exclusively for rental purposes typically does not qualify for homeowners insurance and would require a different type of policy, such as landlord