What type of policy combines property coverage with liability coverage for a home?

• A. Property Policy
• B. Homeowner's Policy
• C. Auto Insurance Policy
• D. Business Owner's Policy

Answer: (B)

A homeowner's policy is specifically designed to provide a comprehensive range of coverage for residential properties. This type of policy combines property insurance, which protects the physical structure of the home and its contents, with liability insurance, which provides financial protection against claims resulting from injuries or damage that occur on the property.

This dual protection makes the homeowner's policy particularly beneficial for individuals, as it addresses the common risks associated with homeownership, such as fire, theft, and personal injury liability. In contrast, the other types of policies mentioned—like the property policy—typically focus solely on property risks without liability coverage and are not tailored to homeowner-specific needs. Auto insurance and business owner’s policies serve entirely different purposes, focusing on vehicles and commercial properties, respectively, and do not encompass the protection a homeowner requires.