Georgia Property & Casualty Practice Exam

What coverage under homeowners insurance generally excludes business-operated structures?

1. Coverage A

2. Coverage B

3. Coverage C

4. Coverage D

The correct answer is: Coverage B

Coverage B under homeowners insurance specifically pertains to other structures on the property that are detached from the main dwelling, such as sheds, detached garages, or fences. However, it generally excludes structures used for business operations. This means that if there is a separate building on the property that is utilized for business purposes, homeowners insurance would not provide coverage for damages or losses related to that structure. On the other hand, Coverage A covers the dwelling itself, which includes the main residence, while Coverage C provides personal property coverage for items within the home. Coverage D addresses loss of use, which covers additional living expenses if the home is uninhabitable due to a covered loss. Therefore, Coverage B is correctly identified as the one that typically excludes coverage for business-operated structures, emphasizing the focus of homeowners insurance primarily on personal residential use rather than commercial activity.