Under a basic residential policy, materials and supplies are covered only if they are:

Under a basic residential policy, materials and supplies are covered only if they are used on the insured's premises. This reflects the principle that coverage is provided for items that are intended for use in relation to the property itself, thus ensuring protection for the homeowner's immediate needs and risks associated with their residence. For example, materials that are intended for repairs, renovations, or maintenance of the home are typically covered while they are stored on the premises, where they might be at risk of loss or damage due to perils such as theft or fire.

The other options do not align with standard policy coverage. Items for sale to insured parties may not necessarily be considered part of the protected residence; similarly, merely being stored in a secure location or having been purchased within the last year does not inherently qualify these items for coverage unless they are tied to the insured's premises. This reinforces the reasoning behind the specific requirement for items to be used on the insured's property to ensure that the coverage aligns with the primary purpose of protecting the homeowner's living situation.