What distinguishes a Dwelling Policy from a Homeowner Policy?

The distinction between a Dwelling Policy and a Homeowner Policy is emphasized by the nature of coverage and occupancy requirements. A Dwelling Policy does not necessitate that the owner occupy the building; it can be used for rental properties or homes that are not owner-occupied. In contrast, Homeowner Policies are designed for owner-occupied residences and typically include a broader range of coverage, including coverage for theft, which is generally automatic.

Homeowner Policies provide additional protections that are not typically included in Dwelling Policies, making them more suitable for those who reside in their homes. This includes comprehensive liability coverage and commonly added coverages such as personal property, loss of use, and often, theft without requiring a separate endorsement.

The implication of coverage differences is significant. While Dwelling Policies focus mainly on the physical structure, Homeowner Policies bundle in additional coverages appropriate for an individual who lives in the home. Hence, option B accurately captures a fundamental characteristic that sets Homeowner Policies apart from Dwelling Policies.