Question 75

The insured desires broader coverage.

Opting for a Homeowners policy is a valid choice when the insured wants broader coverage, as it typically includes not only the dwelling but also personal property, liability protection, and additional living expenses in case of a loss.

A) The house is a six-family dwelling with the insured, who is the owner, occupying one of the units.

This option is incorrect because while a six-family dwelling can be insured under a Homeowners policy if the owner occupies one of the units, it does not inherently justify the purchase of a Homeowners policy over a Dwelling policy. A Dwelling policy may also be suitable for such properties.

B) The insured does not want to have personal liability coverage.

This option is incorrect as it contradicts a primary reason to purchase a Homeowners policy. A Homeowners policy includes personal liability coverage, which is typically not a feature of Dwelling policies. Choosing not to have liability coverage would not necessitate a Homeowners policy.

C) The insured wants to pay a lower premium.

This option is also incorrect because Homeowners policies generally come with higher premiums due to the broader coverage they provide. An insured seeking a lower premium would likely opt for a Dwelling policy, which is more limited in scope.

D) The insured desires broader coverage.

This option is correct as it reflects the primary advantage of a Homeowners policy, which offers comprehensive coverage including personal property, liability, and additional living expenses that are not generally included in a Dwelling policy.

Conclusion

The correct answer is D, as it directly addresses the main advantage of a Homeowners policy over a Dwelling policy, which is the provision of broader coverage. Options A, B, and C fail to meet the criteria for justifying the choice of a Homeowners policy, focusing instead on aspects that either do not apply or run counter to the benefits of such coverage.