Texas All Lines Adjuster Practice Test

Which of the following is NOT covered by a homeowner's policy?

1. Personal property damage

2. Liability for guest injuries

3. Business-related losses

4. Damage from fire

The correct answer is: Business-related losses

A homeowner's policy is designed primarily to protect individuals from various risks associated with owning a home. It typically covers personal property damage, which includes losses due to theft, vandalism, or natural disasters. Additionally, liability coverage within these policies protects homeowners from legal claims arising from injuries to guests on their property. Damage from fire is generally a covered peril under a standard homeowner's policy, providing peace of mind against sudden and unforeseen incidents that could threaten the structure of the home. In contrast, business-related losses are not typically covered by standard homeowner's insurance. This is because homeowner policies are primarily intended to cover personal property and liabilities associated with residential living, rather than the risks tied to operating a business. Individuals who run a business from home may need a separate business insurance policy or an endorsement to their existing homeowners insurance to ensure coverage for business-related activities and losses.