A house under construction is eligible for a Homeowner Policy if which condition is met?

• A. None of these answers are correct
• B. The builder doesn’t qualify for a Commercial Property Policy
• C. The builder is licensed
• D. The insured will be the owner-occupant

Answer: (D)

The key idea is occupancy: a Homeowners Policy is intended for a dwelling that will be the owner's primary residence. For a house under construction to qualify, the person insured must intend to occupy it as their own home once finished. If the builder or someone else will own or occupy the home, or if the property is being built for sale or rental, a homeowners policy typically wouldn’t apply and a builder’s risk or other coverage would be used. Licensing of the builder or the possibility of a Commercial Property Policy does not determine eligibility for a homeowners policy. Therefore, the condition that makes it eligible is that the insured will be the owner-occupant.