What type of business property is covered under a homeowners policy?

A homeowners policy typically covers business property that is located on the residence premises. This is particularly relevant for homeowners who operate a small business or have business-related items at home. The policy provides coverage for business property, such as business equipment, tools, or inventory, as long as they are stored on the insured's premises.

In most cases, the coverage is limited in terms of the total amount and may not cover all types of business property comprehensively, but it does recognize that some business activities can take place within a household setting. Therefore, it’s vital for the homeowner to understand the extent of coverage for their business items under the homeowners policy, especially if they rely on such property for their professional needs.

In contrast, the other options presented do not align with the scope of coverage provided by a homeowners policy. For example, property belonging to tenants that is unrelated to the insured is not covered, as it does not belong to the homeowner. Losses resulting from power failures that occur off the premises are generally not covered either, as they fall outside the typical risks associated with property loss under a homeowners policy. Additionally, the land under the residence itself is not covered; homeowners insurance typically protects the structures and possessions on the property, but not the land