Dwelling policies primarily cover which types of risks?

Dwelling policies are designed to provide coverage focused primarily on property risks associated with residential dwellings. While the core intent of these policies is to cover physical property, they can be broadened to encompass liability coverage through endorsements. This means that basic dwelling policies will cover damages to the dwelling itself and may also be enhanced to include personal liability coverage for incidents that occur on the property where the insured might be held responsible for injuries or damages to others.

This dual functionality of dwelling policies allows homeowners to protect their physical property while also safeguarding against potential legal liabilities, making it a comprehensive option for those seeking insurance solutions that address both aspects of risk. In relation to the context of the other answer choices, only offering property insurance or liability alone does not fully capture the intent and flexibility of dwelling policies. Additionally, while dwelling policies do primarily cater to personal property, they aren't typically designed for commercial property, which further distinguishes them within the realm of insurance products.