What is a key difference between homeowner and dwelling policies regarding eligibility requirements?

Homeowner policies are designed specifically for individuals who reside in the property they are insuring. This requirement for residency means that the policy is structured to cover both the dwelling and personal property within it, as well as liability protection for the homeowners. In contrast, dwelling policies can be issued for properties that are not owner-occupied, such as rental homes or vacation homes. This flexibility makes dwelling policies suitable for various types of ownership situations, including investment properties where the owner does not reside on the premises.

The focus on residency in homeowner policies ensures that the coverage aligns with the needs of those living in the home, while dwelling policies cater to a broader audience, serving those who may not live in the property but still require insurance coverage for it.