Homeowners Policy (HO)Pregunta 293 de 474
An investor buys a house solely to rent out and does not live there. A Homeowners policy cannot be written because:
a.a tenant's liability cannot be insured under any form
b.the owner does not occupy the house as a residence
c.an investor has no insurable interest in the house
d.a rented house can only be written on open perils
Explicación
Owner-occupancy is the eligibility test for a Homeowners form, so a pure rental property is written on a Dwelling policy instead, with rental income insured as fair rental value. The insurable-interest answer is wrong because an owner plainly stands to lose money if the rental house burns.
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