Which of the following correctly describes personal property as covered by homeowner insurance?

Personal property covered by homeowner insurance includes a wide range of items that belong to the insured, and option C correctly describes this aspect by highlighting that these items are incidental to occupancy and can be located both inside and outside of the primary dwelling. This means that personal property can include belongings such as furniture, clothing, and other personal effects whether they are stored within the home or used in areas like the yard or garage.

Homeowner insurance is designed to protect the insured’s personal possessions from certain risks, and this can include property that is not strictly limited to the inside of the home's structure. The significance of this coverage is that it reflects the understanding that personal belongings can be subject to loss or damage outside the dwelling's confines. Thus, items incidental to occupancy encompass a broader range of property than just what is physically located inside the home.

In contrast, the other options are more limited in scope. For instance, stating that personal property must be contained within the primary dwelling restricts coverage unnecessarily. Claiming that personal property is exclusive to the seller is misleading, as homeowner insurance covers the policyholder's property, not just what's owned by someone selling a home. Lastly, the idea that only items listed in the homeowner's policy declaration page are covered fails to account