A house under construction is eligible for a Homeowner Policy if which statement is true?

A house under construction is eligible for a Homeowner Policy if which statement is true?

• A. The builder is licensed
• B. The builder does not qualify for a Commercial Property Policy
• C. The insured will be owner-occupant
• D. None of these

Answer: (C)

A Homeowners policy is written for properties that the insured will occupy as a primary residence. If a house is under construction, the key factor is the intended occupancy: if the eventual owner plans to live there, the property can be insured under a Homeowners policy (often with construction-phase endorsements). Simply having a licensed builder or not qualifying for a Commercial Property policy does not by itself make a under-construction home eligible for a homeowners policy. Therefore, the statement that the insured will be owner-occupant is what makes it eligible.

A Homeowners policy is written for properties that the insured will occupy as a primary residence. If a house is under construction, the key factor is the intended occupancy: if the eventual owner plans to live there, the property can be insured under a Homeowners policy (often with construction-phase endorsements). Simply having a licensed builder or not qualifying for a Commercial Property policy does not by itself make a under-construction home eligible for a homeowners policy. Therefore, the statement that the insured will be owner-occupant is what makes it eligible.