Which item is correctly covered under homeowners insurance?

Homeowners insurance typically covers personal property owned by the policyholder, as long as that property is used for personal, not business, purposes. A bicycle that is used solely for recreational purposes falls under this category and is generally covered against risks such as theft or damage.

In contrast, a business inventory left at a friend's house is not covered under a standard homeowners policy, as it typically excludes business-related items. Tools left in a garage could be covered if they belong to the homeowner and are for personal use, but coverage can vary based on specific policy terms. Additionally, a neighbor's property is not covered, as homeowners insurance only protects the policyholder's property and not items belonging to others.