Which of the following is not eligible for a homeowners policy?

• A. Tom who owns the house he rents to his neighbor
• B. Joe who lives is a garage apartment
• C. A husband and wife who own a vacation home in Georgia
• D. Betty who rent a condominium unit

Answer: (A)

Homeowners policies are written for properties that the insured both owns and occupies as a primary residence. When the owner does not live in the dwelling and rents it out, the property is considered rental/landlord property and is not eligible for a standard homeowners policy. In the scenario where the owner rents the house to a neighbor, the insured does not reside there, so it doesn’t meet the occupancy requirement for a typical homeowners policy. The other scenarios involve occupancy by the insured (living in a garage apartment, owning and using a vacation home themselves) or involve a renter who would use a renters policy instead, which is why they fit within the expected coverage options.