How many owner-occupied residences per covered home are allowed by Homeowners policies?

Homeowners policies typically cover a single primary residence that is owner-occupied. Specifically, these policies are designed to insure properties that serve as the primary dwelling of the insured. In the context of the question, the option stating that up to 4 owner-occupied residences are allowed aligns with the standard practice of insuring primary dwellings.

Additionally, it's important to note that homeowners insurance policies are generally structured to provide coverage for a one-to-four family unit scenario, which means that it can cover a single home or a building with up to four separate living units owned by the policyholder as long as one of them is occupied by the owner. This provision accounts for small multi-family dwellings, further justifying why option C is the most accurate response.

The other choices either limit the coverage to only one residence or suggest a higher number of residences than typically permitted, which does not align with the guidelines of standard homeowners insurance policies.