In a dwelling policy, which of the following statements regarding personal liability coverage is accurate?

In a dwelling policy, personal liability coverage is not automatically included as it is typically in homeowners policies. Instead, it must be explicitly added as a supplement to the dwelling policy or purchased as a separate policy altogether. This distinction is crucial for policyholders, as they need to be aware that if they want liability protection, they will need to seek it out rather than it being included by default.

The inclusion of personal liability coverage differs fundamentally between dwelling policies and homeowners policies. Homeowners policies generally provide this coverage automatically as part of the package. In contrast, dwelling policies, which are often used for rental properties or homes that are not primary residences, do not include this liability coverage unless it is specifically added. Therefore, understanding this requirement is essential for anyone utilizing dwelling policies for their insurance needs.