What does "Homeowner's Policy" primarily cover?

• A. Vehicles and personal property only
• B. Property and liability in a home
• C. Business operations conducted at home
• D. Health and life insurance for homeowners

Answer: (B)

The Homeowner's Policy is designed to provide comprehensive coverage that protects both the property and the liability aspects associated with owning and living in a home. This policy typically covers the dwelling itself, any other structures on the property, and the personal property owned by the insured. Additionally, it includes liability protection for incidents that occur on the property or arise from the homeowner's activities, which can cover legal expenses and damages if someone is injured or their property is damaged due to the homeowner's negligence.

The policy caters to the unique risks that homeowners face, such as damage from fire, theft, or natural disasters, while also addressing potential liabilities that might arise from accidents occurring on the property. This combination of property and liability protection defines the essential function of a Homeowner's Policy within the realm of insurance.

Options that focus solely on personal property or vehicles do not address the comprehensive nature of homeowner's insurance, and those that address business operations or health and life insurance are outside the scope of what a Homeowner’s Policy is intended to cover.