"The lararium is in the house."
Translation:Lararium est in villa.
"Domus" means house/home, and is also used to refer to the city house for the ancient Roman upper-class. "Villa" specifically means the house for the upper-class in the countryside, literally the same as the English word.
So I think in cases where "villa" is used, "domus" should be accepted as well.
Especially in this case as a lararium is something you would find often in both the atrium of a Roman domus and a villa.