How does occupancy affect homeowners insurance eligibility?

Occupancy plays a significant role in determining homeowners insurance eligibility primarily because insurers assess the risk associated with a property based on how it is occupied. When a property is owner-occupied, the likelihood of claims may be lower as homeowners typically invest more in the upkeep and security of their residence. In contrast, properties that are rented out can present a higher risk for insurers since tenants may not maintain the property in the same manner as an owner would. Different occupancy types may also lead to variations in coverage options and premium rates, as insurers consider factors like the frequency of occupancy and the potential for increased liability claims with renters. Thus, insurance eligibility is indeed linked to whether a property is owner-occupied or rented, as these conditions significantly impact the risk assessment and coverage decisions made by insurance providers.