The correct answer is B — inhabitants. Insurance terminology distinguishes unoccupied property from vacant property. An unoccupied dwelling is generally one that is not presently being lived in but may continue to contain the furniture, fixtures, and personal property normally associated with habitation. A vacant building, by contrast, generally lacks both inhabitants and substantial contents necessary for ordinary occupancy.
New York Department of Financial Services guidance directly addresses this distinction. DFS explains that a vacant residence typically contains no personal property and no inhabitants, whereas an unoccupied residence may retain fixtures and furniture but has no inhabitants or occupants. New York case law cited by DFS similarly treats an unoccupied building as one not being lived in even though personal property remains.
Consequently, option C describes an element more characteristic of vacancy, not merely unoccupancy. The presence or absence of alarms or locks does not determine occupancy status, eliminating A and D.
This distinction matters because vacancy and unoccupancy can affect particular causes of loss, conditions, exclusions, protective obligations, and claim determinations. The Series 17-70 outline tests policy definitions, conditions, exclusions, and dwelling-property coverage concepts.
Therefore, a dwelling without inhabitants is properly characterized as unoccupied, making B correct.
