Homeowners Policy (HO)Question 354 of 474
An insured who repairs computers for pay in the garage is sued by a customer whose machine caught fire and burned her desk. Section II of the homeowners policy:
a.excludes it only if a permit was needed
b.excludes the claim as a business pursuit
c.covers the claim up to the $1,000 limit
d.covers the claim under Coverage E in full
Explanation
Section II excludes bodily injury and property damage arising out of an insured's business pursuits, so a paid repair operation run from the home needs a separate commercial liability policy or an endorsement. The $1,000 answer confuses this with damage to property of others, an additional coverage that itself excludes damage arising out of a business.
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