Rhode Island Insurance Adjuster Exam

Are tenants covered under a homeowner's insurance liability policy?

1. Yes, they are fully covered

2. No, they are excluded from coverage

3. Only if they are registered with the insurer

4. Only for limited incidents

The correct answer is: No, they are excluded from coverage

Homeowner's insurance liability policies typically cover the policyholder against claims made by third parties for bodily injury or property damage that occurs on the insured premises. However, tenants, who are individuals renting the property, are generally not covered under the homeowner's liability coverage. This means that if a tenant were to have a liability claim—such as a slip and fall incident in the rented space—that claim would not be covered under the homeowner's insurance policy. Tenants are advised to secure their own renter's insurance to protect against personal liability, personal property loss, and other risks that arise out of their tenancy. Renter's insurance is specifically designed to cover the needs of individuals who occupy a residential space without owning it. This distinction is critical because it reinforces the importance of understanding the limits and exclusions present in homeowner's insurance policies. Options discussing limited coverage or registration with the insurer misrepresent how homeowner's insurance works concerning tenant liability. Homeowner's policies are inclusive of the homeowner's liability cases, not tenants in their rented space. Thus, the choice stating that tenants are excluded from coverage accurately reflects the typical terms and provisions of homeowner’s insurance policies.