South Carolina Personal Lines Practice Exam

When does the theft of guest property get covered under HO-8?

1. When not in the premises

2. When on the premises

3. Only during daytime hours

4. Only if reported within 24 hours

The correct answer is: When on the premises

The theft of guest property is covered under the HO-8 homeowner's policy specifically when it occurs on the premises. This is aligned with the policy's intent to protect the insured's property and that of their guests while on the insured property. The coverage typically extends to personal property belonging to guests, emphasizing the importance of securing items within the home, especially as they relate to liability and responsibility for visitors. The focus on coverage being applicable only when property is on the premises underscores the limitation of the policy; it means that incidents occurring outside the insured location would not be covered. By defining the scope of coverage in relation to the property location, the policy sets clear boundaries on what is considered protected under theft provisions. The other options do not align with the policy terms, since coverage is not extended for theft occurring away from the premises, nor does it limit coverage to specific times of day, or to the timeframe in which a theft must be reported. Thus, defining the coverage specifically to situations on the premises allows for clarity and establishes a direct link to the insured's responsibility for guest property while on their property.