A single-family home rented to a tenant is often ineligible for a homeowners policy; which policy is typically purchased?

• A. Auto policy
• B. Dwelling policy
• C. Condo policy
• D. Businessowners policy

Answer: (B)

When a home is rented to a tenant, it is no longer owned and occupied by the insured as a primary residence. Homeowners policies are designed for owner-occupied homes and typically have occupancy requirements that don’t fit rental situations. For rental properties, the standard product is a Dwelling policy, which is specifically meant for properties not used as the insured’s primary residence—such as single-family homes rented to others, vacation homes, or properties being renovated. It provides coverage for the dwelling itself and other structures, with liability options, while tenants’ personal belongings aren’t covered under the landlord’s policy (tenants would need renters insurance). The other policy types don’t fit this scenario: auto policies cover vehicles, condo policies are for owners of condo units, and businessowners policies are for businesses. So a Dwelling policy is the appropriate choice for a rented single-family home.