South Carolina Personal Lines Practice Exam

How many roomer/boarders can a HO policy accommodate?

1. No roomers/boarders allowed

2. Up to 2 roomers/boarders

3. Up to 4 roomers/boarders

4. Unlimited roomers/boarders

The correct answer is: Up to 2 roomers/boarders

Homeowners policies typically provide coverage for residential properties and may accommodate roomers or boarders under certain conditions. In the context of a homeowners policy, coverage is usually extended to the insured's dwelling and those who live there, including up to a specified number of roomers or boarders. The correct answer indicates that homeowners policies most commonly allow for up to two roomers or boarders. This provision is important as it provides some flexibility for the policyholder, enabling them to rent out part of their home while still being covered under their homeowners insurance. However, it's essential to be aware that exceeding this limit might require additional coverage or even a different type of policy altogether, as the insurance company may not cover damages or liabilities related to additional roomers or boarders. This stipulation reflects the need to manage risk exposure within the homeowners policy framework and ensures that the insurer can adequately assess and price coverage based on how the property is being utilized. The other answers suggest either no roomers or boarders allowed or a higher number than typically accommodated, which does not align with standard homeowners policy provisions.