Which of the following is NOT a characteristic of a dwelling policy?

The correct choice highlights that a dwelling policy does not require the dwelling to be owner-occupied. In fact, dwelling policies are designed to provide coverage for various types of residential properties, and they can be issued for homes that are rented out or are not owner-occupied. This makes dwelling policies versatile for property owners who might lease their properties.

Many homeowners may not live in the property they own, and they still need coverage. An owner-occupied requirement would unfairly limit the policy's applicability and availability to a broader audience of property owners, including landlords.

The other provided options accurately describe characteristics of dwelling policies, including eligibility for dwellings with up to four family units, the flexibility in the type of coverage (dwelling only, contents only, or both), and the allowance for limited service-type incidental occupancy, which can be important for property owners looking to generate income from their properties while maintaining insurance coverage.