Guests' Property coverage protects the named insured's liability for a guest's property under which conditions?

• A. While in a safe deposit box or while the property is inside the premises or in the insured's possession
• B. In transit
• C. In a guest's home outside the premises
• D. In a vehicle

Answer: (A)

The idea behind Guests’ Property coverage is to protect the named insured against liability for a guest’s personal property while that property is on the insured’s premises and under the insured’s control. This is why the best choice includes items that are either inside the home or stored in a location on the premises (such as a safe deposit box) and under the insured’s possession or control. If a guest’s belongings are damaged or lost in those on-premises situations, the policy can respond.

Items are not covered when they’re away from the premises or not under the insured’s control—such as belongings in transit, at a guest’s home off the premises, or inside a vehicle—because the coverage is tied to property being on-site and under the insured’s care.