Question

With regard to the definition of "business," in general an activity that generated less than ____ in compensation during the 12 month period preceding the beginning of a homeowners policy period does not qualify as business.

Answer 1

The definition of 'business' for homeowners policies involves an income threshold over 12 months that varies by insurer and jurisdiction. Below this threshold, activities may not be considered a business for insurance purposes.

Step-by-step explanation:

The definition of "business" with regard to homeowners insurance policies often involves a threshold for income generated during a 12 month period. While the specific threshold amount can vary depending on the insurer and jurisdiction, there is commonly an accepted limit below which an activity does not qualify as a business for the purposes of insurance.

This number is crucial in determining whether or not certain activities carried out within a home are covered under a homeowners policy or require additional business insurance coverage. To find the precise threshold applicable to your situation, you would need to consult your insurance policy documents or speak with an insurance representative.