Which type of applicant would NOT be eligible for coverage under a homeowners policy?

Homeowners policies are designed primarily for residential properties and typically cover single-family homes, certain types of multi-family homes, and properties that may include incidental business activities. However, eligibility for coverage is influenced by ownership and the type of property.

In the case of the applicant living in a duplex that they do not own, they would not be eligible for coverage under a homeowners policy for a few reasons. Homeowners policies are intended for individuals who have an insurable interest in the property, which means they must own the property being insured. Since this applicant does not own the duplex, they lack that insurable interest required by a homeowners policy.

On the other hand, an applicant who owns a single-family dwelling, even if there are incidental business activities, would still be eligible because the ownership provides the necessary interest. An applicant living on a commercial farm may also qualify, provided the farm includes qualifying residential structures. Finally, an applicant who owns a duplex may also be eligible as homeowners policies can extend to certain multi-family dwelling situations when the insured has ownership.

Thus, the critical factor in determining eligibility for a homeowners policy is ownership of the property, which is why the applicant residing in a duplex without ownership cannot obtain coverage.