South Carolina Personal Lines Practice Exam

How many owner-occupied residences can be covered by Homeowners policies for each covered home?

1. 1

2. 2

3. 3

4. 1 - 4

The correct answer is: 1 - 4

Homeowners policies are designed primarily to cover a person's primary residence where they live. In South Carolina, as in many other states, these policies can indeed extend coverage to more than one residence under certain conditions. The correct answer reflects that a homeowner policy can cover 1 to 4 owner-occupied residences, catering to situations where individuals may own multiple homes that they actively inhabit, such as a primary home and a vacation property. This flexibility is beneficial for policyholders, allowing them to bundle multiple residences under one insurance policy rather than purchasing separate policies for each home. It streamlines the management of insurance coverage and may also provide cost savings. This option is specifically valuable for those who might have seasonal residences or secondary homes they reside in and want protected by their homeowners' coverage. On the other hand, the options suggesting a limitation to just one or two residences do not accurately capture the range offered by standard homeowners insurance policies, which encompass multiple sites under the right terms. Thus, option D accurately addresses the capabilities of homeowners insurance in terms of covering multiple residences effectively.