Arizona Adjuster Practice Exam

What is the correct response to an insured's request for coverage of someone else's personal property?

1. The policy automatically covers all guests' property

2. The insured must specify additional coverage

3. Only business property is covered

4. No coverage is provided for non-resident property

The correct answer is: No coverage is provided for non-resident property

The correct response regarding an insured's request for coverage of someone else's personal property is that no coverage is typically provided for non-resident property. Most standard homeowners' and renters' insurance policies generally include provisions that limit coverage to the insured's personal property or, in specific instances, to property owned by residents of the same household. In scenarios involving personal items belonging to guests or individuals residing elsewhere, such as friends or family, these items are usually not covered under the primary policy of the insured. This is rooted in the intent of personal property insurance, which is designed to protect the insured's possessions rather than those of incidental visitors or non-residents. Therefore, when the question addresses the specific scenario of covering someone else's personal property—who is not a resident—policy limitations clearly restrict this type of coverage, which validates the assertion that no coverage is provided for non-resident property.