Louisiana P&C Adjuster Practice Exam

Who is NOT generally eligible for homeowners insurance?

1. Residential property owners

2. Corporations

3. Individuals

4. Tenants

The correct answer is: Corporations

Homeowners insurance is typically designed for individuals or families who own their residential properties. The policy provides coverage for the physical structure of the home and personal belongings within it, as well as liability protection in case of accidents that occur on the property. Residential property owners, individuals, and even tenants can often purchase specific types of homeowners insurance or renter’s insurance to protect their interests. However, corporations are generally not eligible for standard homeowners insurance because they are considered commercial entities. Corporations usually require property insurance policies tailored to business needs, which differ from personal homeowners insurance policies. These policies are structured to cover properties for commercial use rather than personal use, thus excluding corporations from eligibility for standard homeowners insurance.