South Carolina Personal Lines Practice Exam

Which of the following is considered a seasonal and secondary residence eligible for coverage under a HO policy?

1. Primary home

2. Vacation home

3. Rental property

4. Commercial office space

The correct answer is: Vacation home

A vacation home is considered a seasonal and secondary residence eligible for coverage under a Homeowners (HO) policy. Homeowners policies are designed to protect residences that are used as primary homes, as well as properties that are used seasonally or occasionally. A vacation home typically fits the criteria as it is often occupied for a limited duration during specific seasons and is not the owner's primary residence. It's important for homeowners to ensure that their policy provides the necessary coverage for this type of property, as the coverage may differ from that of a primary residence. In contrast, a primary home does not qualify as seasonal or secondary, as it is the main place of residence. A rental property is usually covered under a different type of policy, such as a landlord or dwelling property insurance, rather than a homeowners policy. Commercial office space is also not eligible for coverage under a standard homeowners policy, as it serves a business purpose rather than a residential one.