New Hampshire Property and Casualty Insurance Practice Exam

Under a property insurance policy, the definition of an insured extends beyond just the named insured to include residents of the insured's household who are related. This common provision acknowledges that family members who live with the named insured share an interest in the property and may be impacted by losses or liabilities related to it.

Having coverage for household residents helps protect the interests of the entire family unit, as it reflects the reality that many policies provide coverage not only for the legal owner or policyholder but also for those closely associated with them, typically children, spouses, or other family members. This provision is particularly relevant in situations where an incident occurs that may lead to a claim, such as damage to the property or liability claims involving household members.

The other options narrow the understanding of who qualifies as an insured. The option referring solely to the named insured ignores those who may be living with them and relying on that insurance. Similarly, stating that only tenants or only children under a specific age are insured would not encapsulate the broader definition afforded by most property policies. Thus, recognizing relatives residing in the same household as insured parties aligns with the inclusive approach commonly found in property insurance coverage.