What distinguishes incidental occupancy from other types of business activities?

Incidental occupancy refers to the use of a portion of a residential property for commercial purposes that is secondary to the primary residential function. This means that while the primary use of the property is for living accommodations, a small part of it may be utilized for a business activity, such as a home office or a studio. This distinction is important in insurance contexts as it allows for certain kinds of business activities to be covered or accommodated under standard homeowners' policies, depending on the extent and nature of the business.

The emphasis on incidental occupancy being secondary highlights that the main purpose of the property remains residential. This differentiation is crucial for understanding insurance policies and coverage pertaining to residential properties with mixed uses. Additionally, insurers may have specific stipulations for properties classified under incidental occupancy, often offering additional endorsements to cover business-related risks.