Which of the following limitations does a homeowners policy place on a home-run business?

A homeowners policy typically places restrictions on home-run businesses because standard policies are designed to cover personal residence and not business operations. When considering the limitations, the option that specifies a $10,000 limit in retail sales reflects a common restriction that many insurance providers impose. This limit is crucial because it delineates personal property coverage from business coverage, helping to ensure that personal property is not overly exposed to business risks which would generally require a commercial policy.

Businesses that exceed this threshold may not be fully insured under a typical homeowners policy, which aims to protect the owner's personal residence and belongings rather than business activities. Therefore, it's important for homeowners to recognize this limitation to avoid uncovered liabilities that could arise from operating a business from their home.

The other options suggest various operational guidelines or financial assessments that are not typically part of the standard limitations imposed by homeowners insurance on home-run businesses. These reflect misunderstandings of the fundamental premises of homeowners policies concerning business operations.