Mississippi Property & Casualty Practice Exam

Which type of property is typically excluded from coverage under a homeowners policy?

1. Primary residence

2. Temporary housing

3. Vacant land

4. Rental properties

The correct answer is: Vacant land

Vacant land is typically excluded from coverage under a homeowners policy because homeowners insurance is specifically designed to protect structures that are occupied as a primary residence and their contents. The intent of the policy is to cover risks associated with occupied dwellings, such as fire, theft, and liability. Since vacant land does not contain a dwelling that can experience these risks, it falls outside the scope of what homeowners insurance addresses. In the context of the other options: primary residence generally receives full coverage under a homeowners policy; temporary housing, while less common, can sometimes be covered temporarily when the primary residence is uninhabitable; and rental properties might not be covered under standard homeowners policies but can often be addressed through specific landlord insurance policies. Thus, vacant land stands out as lacking the characteristics that necessitate homeowners insurance coverage.