Endorsements & Optional CoveragesQuestion 440 of 474
A permitted incidental occupancies endorsement is the right answer when the insured:
a.Rents the whole dwelling to a series of tenants
b.Operates a delivery firm out of a leased warehouse
c.Runs a small studio inside the residence premises
d.Stores a neighbor's furniture in a rented garage
Explanation
The endorsement recognizes a described small business occupancy on the residence premises, lifting the business exclusion for that occupancy and extending liability and business property coverage to it. It is tied to the residence: a business run from a leased warehouse elsewhere needs a commercial policy, and renting the whole dwelling out is a dwelling policy question, not an incidental occupancy.
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